Kospi's record-setting rally continues, but Samsung, SK hynix fall short of milestones

Korea’s benchmark stock index continued its record-setting rally on Tuesday, but shares of Samsung Electronics and SK hynix fell short of symbolic price milestones despite an early boost from positive U.S. tech sentiment.

The Kospi closes at a record high of 3,823.84 at a Hana Bank dealing room in Jung District, central Seoul, on Oct. 21. [NEWS1]

Korea’s benchmark stock index continued its record-setting rally on Tuesday, but shares of Samsung Electronics and SK hynix fell short of symbolic price milestones despite an early boost from positive U.S. tech sentiment.

The Kospi closed at 3,823.84, up 0.24 percent from the previous session, marking a new all-time high for the second consecutive trading day. It had first surpassed the 3,800 mark on Monday. In contrast, the tech-heavy Kosdaq slipped 0.37 percent to 872.50.

Foreign and retail investors were net buyers in the main bourse, purchasing 155.4 billion won ($108.9 million) and 12.4 billion won worth of stocks, respectively, while institutional investors sold a net 211.5 billion won.

Samsung Electronics briefly touched 99,900 won during intraday trading, nearing the “100,000 won Samsung” milestone, but closed down 0.61 percent at 97,500 won. SK hynix hit 502,000 won, momentarily breaking the “500,000 won hynix” mark, before retreating 1.34 percent to end at 479,000 won.

Shares in automakers Hyundai Motor and Kia rose 3.43 percent and 1.14 percent, respectively, amid optimism over potential tariff cuts. Other gainers included HD Hyundai Heavy Industries, up 9.96 percent, LG Energy Solution up 1.04 percent, Samsung Biologics up 0.79 percent and Hanwha Aerospace up 2.2 percent.

A Samsung Electronics logo and a computer motherboard appear in this illustration taken on Aug. 25. [REUTERS/YONHAP]

Tuesday’s gains were largely driven by overnight rallies on Wall Street. Easing U.S.-China trade tensions and positive earnings expectations for major U.S. tech firms helped lift sentiment, with the Dow Jones Industrial Average climbing 1.12 percent, the S&P 500 gaining 1.07 percent, and the Nasdaq rising 1.37 percent. Apple surged 4 percent to a record high, buoyed by strong sales of its new iPhone 17.

Market optimism was further boosted by expectations that Korea and the United States may reach a tariff agreement during the APEC Economic Leaders' Meeting later this month in Korea. According to reports, the two sides are exploring a framework deal that excludes contentious issues but includes broad principles in a joint statement at the summit.

Under the draft agreement, the two countries are reportedly discussing a $350 billion investment plan and a reduction in tariffs on major goods, including automobiles, from 25 percent to 15 percent.

The logo of SK Hynix is seen at its headquarters in Seongnam, Korea, April 25, 2016. [REUTERS/YONHAP]

“The United States is not insisting on a full cash investment from Korea,” said Industry Minister Kim Jung-kwan, who returned from the United States on Monday. “Washington showed understanding of Korea’s foreign exchange concerns, and that common ground helped shape the current talks.”

“Expectations that the U.S.-China trade conflict and the Korea-U.S. tariff negotiations may be resolved at APEC helped lift the market,” said Lee Jae-won, an analyst at Shinhan Securities noting that “lingering concerns over unresolved tariff issues pushed the won lower.”

The Korean won had been quoted at 1,427.75 won won against the U.S. dollar as of 3:30 p.m., up 0.54 percent from the previous session's close of 1,420.15 won.

“Domestic stocks are broadly gaining across sectors, including semiconductors, EV batteries, autos, power equipment and securities,” said Lee Sung-hoon, an analyst at Kiwoom Securities. “With the earnings season picking up, stocks with strong earnings momentum are likely to see gains in this bull market.”

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 KO SUK-HYUN [kim.minyoung5@joongang.co.kr]