The South Korean stock market soared to a record peak on Thursday, with the benchmark Kospi index closing above 7,980, just shy of the historic 8,000-point milestone. Investors keenly observed the ongoing US-China summit, while the robust rally in artificial intelligence (AI) related stocks significantly boosted market sentiment.
Following a session of choppy trading, the Korea Composite Stock Price Index (Kospi), the country’s benchmark equity index, advanced by 137.4 points, or 1.75 percent. It concluded the day at a fresh all-time high of 7,981.41, moving ever closer to the significant 8,000-point threshold.
Although the Kospi opened on a positive note, it experienced a dip to 7,842.72 during early trading hours. However, the index demonstrated strong resilience, rebounding impressively in the afternoon session to touch an intraday peak of 7,991.04.
Trading activity was robust, with a substantial volume of 842.3 million shares exchanged, valuing 50.6 trillion won (approximately $34 billion USD). Market breadth was positive, as gaining stocks significantly outnumbered declining ones, with 647 advancing issues against 220 falling.
Foreign investors extended their selling spree for the sixth straight session, divesting a significant 2.1 trillion won from the market. This outflow was counteracted by strong buying from domestic retail investors and institutional funds, who collectively acquired local shares worth 1.8 trillion won and 193 billion won, respectively, demonstrating confidence in the South Korean equity market.
Following a brief pause from its record-breaking momentum on Tuesday, the Kospi demonstrated renewed strength, gaining ground for the second consecutive day. This sustained performance brings the index notably closer to the historic and unprecedented 8,000-point mark.
The market’s upward trajectory was significantly bolstered by investor optimism surrounding US President Donald Trump’s ongoing visit to China. Hopes were high that this high-profile US-China summit would serve to de-escalate geopolitical tensions between the world’s two economic superpowers, particularly concerning trade disputes, the Taiwan issue, and other contentious matters.
“Investors displayed a mix of anticipation and caution regarding the outcomes of the US-China summit,” noted Lee Kyoung-min, an analyst at Daishin Securities, highlighting the nuanced market sentiment.
During their high-stakes summit in Beijing, US President Trump and Chinese President Xi Jinping conveyed their shared intent to foster stable relations between the two global superpowers. However, they also firmly articulated their respective stances on critical issues such as Taiwan, international trade policies, and other pivotal concerns, underscoring the complexities of their diplomatic engagement.
Meanwhile, major US stock indexes also advanced overnight, primarily fueled by significant gains in the technology sector. This surge was attributed to news that executives from leading tech firms, including AI chip giant Nvidia, Tesla, and Apple, were accompanying President Trump on his state visit to Beijing, signaling potential for technology cooperation.
Specifically, the technology-focused Nasdaq Composite Index closed 1.2 percent higher, while the S&P 500 Index rose by 0.58 percent, with both benchmarks achieving new record highs. In contrast, the Dow Jones Industrial Average experienced a slight decline of 0.14 percent.
Despite prevailing concerns, including a faster-than-anticipated increase in US producer prices for April—a crucial indicator of inflation—and persistent geopolitical anxieties surrounding limited progress in peace discussions between the US and Iran, these factors failed to significantly dampen the buoyant sentiment in the stock market.
Among the top market performers, market capitalization leader Samsung Electronics saw its shares surge by 4.23 percent, closing at 296,000 won. Conversely, its key chipmaking competitor, SK Hynix, experienced a marginal dip of 0.3 percent, finishing at 1.97 million won.
Leading battery manufacturer LG Energy Solution recorded a gain of 2.79 percent, reaching 442,000 won. Similarly, the trading and construction conglomerate Samsung C&T also posted a strong performance, soaring 3.15 percent to close at 442,000 won.
In the biotechnology sector, industry leader Samsung Biologics advanced by 2.77 percent, with its shares trading at 1.45 million won. Pharmaceutical firm Celltrion also saw an increase, rising 2.41 percent to 195,100 won.
Financial sector stocks also demonstrated a bullish trend. KB Financial Group saw its shares climb 2.63 percent to 156,000 won, while Shinhan Financial Group expanded by 1.68 percent, reaching 96,800 won. Notably, Samsung Life Insurance surged impressively by 7.84 percent, closing at 330,000 won.
Conversely, not all sectors experienced gains. Power plant equipment manufacturer Doosan Enerbility saw its stock fall by 2.42 percent to 117,100 won. Major shipbuilder HD Hyundai Heavy experienced a significant plunge of 8.46 percent, with its shares closing at 671,000 won.
Shares in the electrical equipment sector also recorded declines.
Within this segment, HD Hyundai Electric dropped 1.02 percent to 1.27 million won. LS Electric experienced a dip of 1.75 percent, settling at 280,000 won, and Samsung Electro-Mechanics shed 0.49 percent, closing at 1.02 million won.
Automaker Kia also saw a slight decrease, with its stock slipping 0.78 percent to 178,100 won.
