SEOUL, September 18 (AJP) - South Korean stocks rebounded Friday morning as falling U.S. Treasury yields and oil prices lifted technology shares, with foreign investors leading the chip buying spree.
As of 10:30 a.m., the benchmark KOSPI stood at 6,835.12, up 1.8 percent. The index opened sharply higher and climbed as high as 6,885.70 before trimming gains.
Foreign investors bought a net 151.5 billion won ($109 million) of KOSPI shares, reversing course after eight consecutive sessions of net selling through Thursday. Institutions bought 371.9 billion won, while retail investors sold 911.4 billion won.
The U.S. 10-year Treasury yield fell back below 5 percent to around 4.93 percent overnight, easing some of the pressure that followed the Federal Reserve's rate increase earlier this week.
Wall Street rallied, with the S&P 500 gaining 1.14 percent and the Nasdaq Composite climbing 1.69 percent. The Philadelphia Semiconductor Index surged 3.14 percent as Nvidia rose 2.54 percent, AMD gained 6.36 percent, Intel jumped 7.67 percent and Micron Technology advanced 5.50 percent.
SK hynix rose 4.3 percent to 1,819,000 won, while Samsung Electronics gained 2.2 percent to 258,000 won.
Samsung Electro-Mechanics climbed 4.8 percent to 1,394,000 won after KB Securities forecast record third-quarter earnings on strong demand for artificial intelligence server components.
The brokerage expects operating profit of 660.1 billion won, about 11 percent above market expectations, citing higher utilization rates, price increases and a larger share of high-value multilayer ceramic capacitors and flip-chip ball grid array substrates.
Computer and peripheral stocks gained 5.4 percent, telecommunications equipment rose 4.87 percent and electrical equipment advanced 4.6 percent.
Cable stocks were particularly strong, jumping 11.04 percent as expectations grew that Korean suppliers could benefit from U.S. investment in power infrastructure.
Gaon Cable surged 21.9 percent to 317,500 won. The company operates a production base in North Carolina and is expanding U.S. capacity as investment in artificial intelligence data centers and power grids drives demand for electricity infrastructure.
Optical communications stocks also rallied, with Daehan Fiber Optics rising 12.7 percent and Wooriro jumping 19.1 percent.
The secondary KOSDAQ gained 0.6 percent to 827.11 after touching 833.57 earlier in the session.
Foreign investors bought 15.5 billion won and institutions followed with 8.5 billion won, while retail investors sold 23 billion won.
Oil prices extended their decline for a third session as concerns over Middle East supply disruptions eased.
West Texas Intermediate crude fell 0.7 percent to around $101.20 a barrel, while Brent crude declined 0.8 percent to about $104.
Saudi Arabia is expected to restore about half the capacity of its East-West pipeline within days and return it to full operation within six weeks, easing concerns over crude flows that bypass the Strait of Hormuz.
The Korean won weakened 0.2 percent to 1,384.1 against the dollar.
Across Asia, Japan's Nikkei 225 gained 0.99 percent to 64,764.04 ahead of the Bank of Japan's policy decision.
China's Shanghai Composite rose 0.4 percent to 3,892.27, while Hong Kong's Hang Seng Index gained 0.6 percent to 24,752.30.
AJP Takeaways
- KOSPI up 1.8% at 6,835.12 as lower U.S. Treasury yields and oil prices lifted risk appetite.
- Foreigners turn buyers: Overseas investors bought a net 151.5 billion won of KOSPI shares after eight straight sessions of net selling.
- Chip stocks lead: SK hynix gained 4.3% and Samsung Electronics rose 2.2% after a strong overnight rally in U.S. semiconductors.
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