South Korean stocks experienced a significant surge Wednesday, opening nearly 3 percent higher, propelled by strong gains in blue-chip technology shares. This rally occurred despite ongoing uncertainties in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) soared by 162.04 points, or 2.87 percent, reaching 5,802.52 in the first 15 minutes of trading.
Overnight, major US indexes closed positively for the second consecutive session, even with a rebound in global oil prices. The Dow Jones Industrial Average increased by 0.1 percent, the tech-heavy Nasdaq composite climbed 0.5 percent, and the S&P 500 rose by 0.2 percent.
Investors are closely monitoring the Middle East situation, with hopes rising for a potential reopening of the Strait of Hormuz, a crucial global oil export route. Additionally, the two-day US Federal Open Market Committee (FOMC) meeting this week is a key focus for a potential rate decision.
In Seoul, most top-cap shares opened in positive territory, with tech stocks maintaining strong momentum driven by expectations for robust chip sector performance.
Market heavyweight Samsung Electronics surged by 4.44 percent, while its chipmaking competitor, SK hynix, soared by 3.71 percent.
Both companies were prominent at US chip giant Nvidia’s annual tech conference held on Tuesday, boosting expectations for continued growth in the artificial intelligence sector.
Automobile giant Hyundai Motor climbed 2.3 percent, and its sister company, Kia, advanced 2.21 percent.
AI investment firm SK Square shot up 5.45 percent, while power plant manufacturer Doosan Enerbility expanded 2.59 percent.
Trading firm Samsung C&T jumped 5.1 percent, and Samsung Life Insurance escalated 8.53 percent.
Major defense firm Hanwha Aerospace was among the few decliners, losing 1.58 percent.
