Key facts
- South Korean shares closed up 4.61% at 6,995.39, marking a five-week high.
- The surge was attributed to renewed optimism surrounding artificial intelligence following OpenAI's launch of its new-generation model.
- Semiconductor stocks, such as Samsung Electronics and SK Hynix, experienced significant gains.
- Foreign and institutional investors were net buyers of South Korean equities.
- The Korean won strengthened against the U.S. dollar.
South Korean shares experienced a significant surge on Monday, with the benchmark Korea Composite Stock Price Index (KOSPI) climbing 4.61% to close at 6,995.39, its highest level in over five weeks. This rally was primarily fueled by renewed optimism in the artificial intelligence sector, following the launch of OpenAI's new-generation AI model, GPT-6 Astra. The development is expected to drive increased demand for memory chips, a key component in AI technology.
Despite a mixed performance in major U.S. stock indexes on Friday, the PHLX semiconductor index saw a notable gain, reflecting positive sentiment towards the sector. Analysts noted that OpenAI's new model could usher in an era of artificial general intelligence (AGI), further stimulating investor interest.
Leading the gains were semiconductor companies, with Samsung Electronics jumping 5.68% and its rival SK hynix soaring 8.26%. Other AI-related stocks also performed well, including Hanmi Semiconductor, a chip equipment maker, which rose 4.57%, and SK Square, the parent of SK hynix, which climbed 8.07%.
Beyond the tech sector, other industries also saw positive movement. Top carmaker Hyundai Motor added 2.48%, and its affiliate Hyundai Mobis climbed 2.37%. Financial institutions also showed strength, with Hana Financial Group advancing 3.43% and Shinhan Financial Group rising 3.26%.
Defense firms presented a mixed picture, with LIG D&A gaining 1.07% while Hanwha Aerospace saw a slight decline of 1.52%.
In currency markets, the Korean won strengthened against the U.S. dollar, trading at 1,340.5 won per dollar, up from the previous session. This currency movement often correlates with strong equity market performance.