South Korean stocks staged their strongest rally on record on July 31, with the benchmark Kospi surging nearly 18% as better-than-expected Microsoft earnings eased concerns over artificial intelligence (AI) spending and revived demand for semiconductor shares.
According to Yonhap, the Kospi jumped 1,001.89 points, or 17.91%, to close at 6,595.45, rebounding sharply after losing more than 17% over the previous three sessions.
The gain was the largest in the index’s history in both percentage and point terms, surpassing the previous records of an 11.95% rise in October 2008 and a 612.52-point advance on July 9.
The rally triggered buy-side trading curbs on both the Kospi and the technology-heavy Kosdaq shortly after the market opened.
Sentiment improved after Microsoft’s second-quarter earnings exceeded expectations, supported by stronger sales and cloud-computing growth. The results helped ease fears that heavy investment in AI infrastructure was failing to generate sufficient returns.
Foreign and institutional investors bought a net 7.22 trillion won and 1.15 trillion won worth of shares, respectively, while retail investors sold a net 8.26 trillion won.
Trading volume reached 430.2 million shares valued at 48.9 trillion won, with gainers overwhelming decliners 772 to 127.
Samsung Electronics soared 26.81% to 262,500 won, while SK hynix hit its daily limit after jumping 29.95% to 1.72 million won.
Chip equipment maker Hanmi Semiconductor surged 27.98% to 214,500 won, while SK Square, the parent company of SK hynix, climbed 29.91% to 1.04 million won.
Elsewhere, Hyundai Motor gained 10.54% to 388,000 won and HD Hyundai Heavy Industries advanced 7.37% to 481,000 won.
Defence counters also strengthened, with Hanwha Aerospace rising 6.01% to 917,000 won and LIG Nex1 jumping 9.05% to 699,000 won.
