Exchange-traded funds tracking the Korean market extended their upward momentum on Wednesday, with leveraged products leading the charge. The Southern East Spring SK hynix Daily Leverage (2x) Product (07709) jumped 7.6% to HK$44.18, with provisional turnover reaching HK$62.779 million, while the Southern 2x Long Samsung Electronics (07747) advanced 4.73% to HK$81.56. The Southern KOSPI (03121) also climbed 2.12% to HK$6.985.
On the news front, South Korea's KOSPI index strengthened again today, reclaiming the 7,000-point level during intraday trading for the first time in 15 sessions since August 18. The release of OpenAI's flagship model Astra has reignited enthusiasm for AI computing infrastructure, with memory chips emerging as the primary beneficiary. Supply-side pressures are intensifying, as KB Securities warned in its latest research note that memory inventories at Samsung Electronics and SK hynix have fallen to less than 10 days' worth this quarter, leaving the two memory semiconductor giants with little room to squeeze out additional supply for unexpected demand spikes.
Goldman Sachs' Chief Asia-Pacific Equity Strategist Timothy Moe has once again reaffirmed his 12,000-point target for the KOSPI index, implying nearly 80% upside from current levels. Moe argues that the market is systematically underestimating the duration of the AI-driven memory chip demand cycle. He has also significantly raised his capital expenditure forecast for major U.S. technology companies to $1.2 trillion next year, predicting that the "memory shortage" triggered by data center expansion will intensify further into 2027.
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