The South Korean stock market soared more than 2% on Thursday, shattering the 9000-point barrier for the first time in its history. Investors piled into chipmaker stocks amid a hawkish stance from the U.S. Federal Reserve and uncertainty surrounding the situation with Iran.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 199.6 points, or 2.25%, at 9,063.84 points, after hitting an intraday high of 9,106.07.
The index extended its winning streak to a sixth consecutive session, buoyed by optimism surrounding artificial intelligence (AI) and related sectors.
Trading volume was heavy for the day at 505.9 million shares, with a total value of 49.9 trillion won (approximately $327 billion). Foreign investors were net buyers of 1.3 trillion won, while retail and institutional investors together were net sellers of 1.2 trillion won.
The index's gains defied overnight declines on Wall Street, which followed signals from Federal Reserve policymakers that interest rate hikes were necessary to curb inflation.
Analysts noted that the sustained rise in the KOSPI was primarily driven by share price increases for South Korea's two largest chip manufacturers, Samsung Electronics Co Ltd and SK Hynix Inc.
Investors are anticipating that semiconductor companies may gain greater pricing power due to persistent supply constraints.
Risk appetite also saw a recovery, partly on expectations of a potential end to U.S.-Iran tensions. The Federal Reserve's decision to hold interest rates steady for a fourth consecutive meeting appeared to have a limited impact on investor sentiment.
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