Key facts
- South Korean stocks surged over 5 percent on Thursday.
- The KOSPI index briefly topped 9,000 points.
- The rally was driven by U.S. chipmaker Micron Technology's strong earnings report.
- Micron's performance boosted optimism in the AI infrastructure and memory chip sectors.
- The Korean won fell against the U.S. dollar.
South Korean stocks experienced a significant surge on Thursday, with the benchmark Korea Composite Stock Price Index (KOSPI) climbing over 5 percent and briefly exceeding the 9,000-point level. This rally was primarily ignited by the stronger-than-expected quarterly earnings report from U.S. semiconductor giant Micron Technology.
The KOSPI closed up 459.28 points, or 5.42 percent, at 8,930.30, following a 3.26 percent gain the previous day. The index reached an intraday high of 9,044.04. A buy-side sidecar was triggered shortly after the market opened due to the strong upward momentum.
Micron, the world's third-largest memory chipmaker, released earnings that surpassed analyst expectations, easing concerns about the sustainability of the artificial intelligence (AI) rally. The company is seen as a key beneficiary of increased spending on AI infrastructure, alongside South Korean chipmakers Samsung Electronics and SK Hynix, due to rising demand for memory chips and high-bandwidth memory (HBM). Despite the stock market gains, the Korean won weakened against the U.S. dollar.