South Korean stocks ended a holiday-shortened week firmly higher, with the benchmark Kospi gaining about 2.7% from Sept 18 to Sept 23, as renewed enthusiasm for artificial intelligence (AI) and semiconductor stocks outweighed geopolitical and inflation concerns.
The Kospi closed at 7,080.92 on Sept 23, up 63.01 points or 0.90%, compared to 6,894.23 at the end of the previous week. Markets were closed on Sept 24 and Sept 25 for the Chuseok holiday.
The rally began on Sept 21, when the index surged 113.49 points or 1.65% to 7,007.72, reclaiming the 7,000 level as investors piled into semiconductor shares. Samsung Electronics jumped nearly 5%, while improving sentiment towards AI-related stocks helped offset concerns over Middle East tensions and crude oil prices above US$100 a barrel.
Gains, however, moderated the following day, with the Kospi adding just 10.19 points or 0.15% to 7,017.91. The market opened more than 2% higher following a technology-led Wall Street rally, but profit-taking by retail and institutional investors erased most of the early advance. Semiconductor shares remained supported by renewed global AI optimism.
The market regained momentum on Sept 23 as another record close for the Nasdaq boosted demand for Korean chipmakers. Samsung Electronics rose 3.07% and SK hynix gained 1.25%, helping the Kospi close at its highest level in about two months, although gains were trimmed ahead of the long Chuseok break. Easing Middle East tensions and lower oil prices also improved risk sentiment.
Overall, the Kospi advanced in all three sessions between Sept 21 and Sept 23, with AI and semiconductor strength remaining the dominant driver, while profit-taking and caution ahead of the holiday kept the rally from extending further.
