Key facts
- South Korean stocks surged nearly 13% on Friday morning.
- The rally was driven by semiconductor shares and strong earnings from Microsoft.
- The KOSPI index rose 12.82% to 6,310.86.
- Samsung Electronics and SK Hynix saw significant gains.
- The Korean won reached a nine-month high against the dollar.
- Authorities may have intervened to support the won.
South Korean stocks experienced a significant surge on Friday morning, with the benchmark Korea Composite Stock Price Index (KOSPI) trading up nearly 13 percent. This rally followed a substantial three-session sell-off, largely attributed to concerns over artificial intelligence spending, which had caused the KOSPI to fall nearly 40 percent in the preceding month.
Investors were motivated to buy semiconductor shares after Microsoft released a stronger-than-expected earnings report, which also eased fears about massive spending on AI infrastructure. Wall Street closed higher overnight, with the S&P 500 climbing 1.66 percent, the Nasdaq gaining 2.78 percent, and the Dow Jones Industrial Average rising 1.19 percent. The PHLX chip index, a key indicator for U.S. semiconductor giants, surged 8.2 percent.
In Seoul, major companies saw substantial gains. Market bellwether Samsung Electronics rose 18.24 percent, and SK hynix skyrocketed 21.86 percent. Other notable movers included top carmaker Hyundai Motor, which jumped 6.98 percent, and internet firm Naver, which gained 5.03 percent. Leading shipbuilder HD Hyundai Heavy Industries rose 4.13 percent, and defense giant Hanwha Aerospace advanced 4.86 percent.
Concurrently, the South Korean won reached a nine-month high against the U.S. dollar. This strengthening of the won is suspected to be the result of market-smoothing operations by South Korean authorities. As of 11:20 a.m., the won was trading at 1,432.4 won per dollar, down 14.4 won from the previous day's closing stock trading.