Kospi surges past 6,000 as SK hynix record earnings reignite AI rally
Stocks climbed 6.63 percent as chipmakers surged on SK hynix's record results and shareholder return plan, while the won weakened against the dollar.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 6,012.44 points on Oct. 28, up 374.10 points, or 6.63 percent, from the previous trading session.
YONHAP
Shares surged by more than 6 percent Wednesday, led by a rally in chipmakers after SK hynix reported record quarterly earnings and announced additional shareholder returns. The won weakened against the dollar.
The benchmark Kospi gained 374.1 points, or 6.63 percent, to close at 6,012.44, after rising as high as 6,032.28.
As the market rallied on tech gains, the Korea Exchange activated a buy-side sidecar shortly before 11 a.m., suspending program trading buy orders for Kospi-listed stocks for five minutes.
The measure is triggered when Kospi 200 futures rise at least 5 percent and stay at that level for at least one minute. It was activated for the second straight session.
Earlier in the day, SK hynix reported record-high third quarter revenue and operating profit, driven by robust memory chip demand as the AI boom continues. The world's second-largest memory chipmaker announced a shareholder return program worth more than 100 trillion won ($75.3 billion) for 2026.
Investors were also awaiting the Federal Reserve's interest rate decision scheduled for early Thursday, looking for signals on the future path of U.S. interest rates.
Trade volume was light at 223.2 million shares worth 19.83 trillion won, with advancers outnumbering decliners 580 to 288.
Foreigners and institutions bought a net 815.83 billion won and 960.79 billion won, respectively, while individuals sold a net 1.8 trillion won.
“SK hynix demonstrated that strong demand for AI chips can translate into solid operating profits and shareholder returns, easing concerns about the sustainability of the AI-driven rally and a potential peak in the memory chip cycle,” Lee Jae-won, an analyst at Yuanta Securities, said.
Market heavyweights rose across the board.
Top market cap Samsung Electronics jumped 9.01 percent to 242,000 won, and chip giant SK hynix soared 10.89 percent to 1.49 million won.
SK Square, SK hynix's parent firm, rose 11.23 percent to 921,000 won, and Samsung Electro-Mechanics, a Samsung Electronics affiliate, surged 8.74 percent to 1.3 million won.
The local currency weakened by 10.7 won from the previous session to trade at 1,337.7 won against the dollar as of 3:30 p.m.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys gained 4.1 basis points to 3.799, and the return on the benchmark five-year government bonds added 5 basis points to 3.949.
Yonhap
