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Kospi surges 2.5% to striking distance of 4,000 mark on chip, battery rally

Published: 24 Oct. 2025, 18:45

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,941.59 points on Oct. 24, up 96.03 points, or 2.5 percent, from the previous trading session. [NEWS1]

Korea's benchmark Kospi bourse hit a new record high to close just shy of the 4,000 mark on Friday, buoyed by strong rallies in chip and battery stocks amid renewed optimism over easing U.S.-China trade tensions. The won strengthened against the dollar.

The index jumped 2.5 percent, or 96.03 points, to close at 3,941.59, after hitting an intraday high of 3,951.07 — both record levels.

Semiconductor shares led the market higher. SK hynix rose 6.58 percent, extending its streak of record highs, while Samsung Electronics gained 2.38 percent, also reaching a new all-time high. The combined market capitalization of Samsung Electronics, including its preferred shares, and SK hynix surpassed 1 quadrillion won ($695 billion) for the first time.

Battery makers also saw sharp gains. LG Energy Solution surged 9.94 percent, and Samsung SDI climbed 13.57 percent. In contrast, Hanwha Aerospace fell 3.43 percent, Kia slipped 0.09 percent, and KB Financial Group dropped 0.87 percent.

Investors were encouraged by expectations that the U.S.-China trade dispute may ease. White House spokesperson Karoline Leavitt said on Thursday that U.S. President Donald Trump will meet with Chinese President Xi Jinping during his Asian tour.

Market sentiment also improved after U.S. chipmaker Intel reported an earnings surprise, posting third quarter revenue of $13.65 billion, above market expectations of $13.14 billion.

Analysts expect semiconductor and secondary battery stocks to extend their rally.

“Given that memory chip demand is more stable than during the 2018 boom, valuations for Samsung Electronics and SK hynix need to be reassessed," said Kim Woon-ho, an analyst at IBK Investment & Securities.

Park Jin-soo, an analyst at Shinyoung Securities, noted that “While LG Energy Solution still faces risks in the U.S. market such as visa and immigration issues, it is filling production gaps with new orders.”

“Samsung SDI is expected to begin producing energy storage system batteries locally from the fourth quarter, with clearer improvements in European sales performance," Park added.

A screen in Hana Bank's trading room in central Seoul shows the Kospi and the won-dollar exchange rate on Oct. 24. [NEWS1]

Other Asian markets also gained on Friday. Japan’s Nikkei 225 climbed 1.35 percent, China’s Shanghai Composite Index added 0.71 percent and Hong Kong’s Hang Seng Index rose 0.74 percent.

“Technology, artificial intelligence and power equipment sectors saw strong rebounds across the region," said Lee Kyung-min, an analyst at Daishin Securities.

U.S. stocks also closed higher overnight, with the Dow Jones Industrial Average up 0.31 percent, the Nasdaq Composite rising 0.89 percent, and the S&P 500 gaining 0.58 percent.

The won was quoted at 1,436.85 won against the dollar at 3:30 p.m., down 2.5 won, or 0.22 percent, from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys went up 3.3 basis points to 2.61 percent, and the return on five-year government bonds increased 3.4 basis points to 2.72 percent.

“The outcome of the U.S.-China summit [next week] could directly affect the Russia-Ukraine ceasefire,” said Park Seok-jung, an analyst at Shinhan Investment & Securities.

“A truce would ease geopolitical risks and lower oil prices, which could help control inflation — a key momentum not only for stocks but also for bonds," Park added.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM MIN-JOONG [[email protected]]