The South Korean stock market rose 8% on Thursday, with Samsung Electronics Co., Ltd. reaching a record high. This followed the company's last-minute agreement with its union on wage issues, averting a strike and alleviating market concerns about potential disruptions to the South Korean economy and the global chip supply chain.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 606.64 points, or 8.42%, at 7,815.59, marking its highest closing level since May 14 and its largest single-day gain since April 1.
Early Thursday, trading in the KOSPI and the tech-heavy Kosdaq index was temporarily suspended by the Korea Exchange to curb volatility after stock index futures surged more than 5% and 6%, respectively.
Shares of heavyweight Samsung Electronics were boosted after its management reached a last-minute agreement with union leaders on bonus payments, averting a strike that was set to begin on Thursday. The union has suspended its 18-day strike plan, and the preliminary agreement will be put to a vote from Friday through next Wednesday.
Shares of SK Hynix, a supplier to Nvidia, also rose sharply after the U.S. AI chipmaker reported record sales and profits overnight, driven by a surge in data center computing demand and the rapid development of AI agents.
Among heavyweights, Samsung Electronics gained 8.51%, and SK Hynix rose 11.17%. Battery maker LG Energy Solution advanced 4.29%. LG Chem increased 4.82%, major portal operator Naver rose 4.18%, and mobile communications app operator Kakao gained 4.11%. Hyundai Motor climbed 12.50%, Kia Motors advanced 12.38%; steelmaker POSCO Holding increased 6.35%, while pharmaceutical firm Samsung Biologics rose 4.34%.
Daishin Securities analyst Lee Kyoung-min stated, "Nvidia's better-than-expected earnings suggest the AI cycle could be stronger, boosting market confidence in the chip sector."
Foreign investors sold a net 221.221 billion won in KOSPI-listed stocks.
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