Kospi opens sharply higher on revived AI optimism, SK hynix earnings

Stocks opened sharply higher Wednesday, tracking overnight gains on Wall Street, as strong AI-driven semiconductor earnings lifted investor sentiment ahead of the Federal Reserve's interest rate decision.

The benchmark Kospi rose 125.51 points, or 2.23 percent, to 5,763.85 at the opening bell following the previous session's over 3 percent rally.

Overnight, U.S. stocks extended their gains, led by a rally in AI-related technology shares.

The tech-heavy Nasdaq Composite climbed 1.18 percent, while the Philadelphia Semiconductor Index jumped 3.6 percent, providing a positive note for Korean chipmakers.

Before the opening bell, SK hynix reported a 631 percent spike in third-quarter operating profit at 83.3 trillion won ($62.7 billion), with sales soaring 327.9 percent to 104.61 trillion won on robust demand for AI memory chips. The world's second-largest memory chip maker also announced an additional 60 trillion won in shareholder returns.

Meanwhile, investors remained cautious ahead of the Federal Reserve's rate decision early Thursday, looking for signals on the future path of U.S. interest rates.

Yonhap