Amid U.S. President Trump's clear abandonment of imposing tariffs on Europe and his release of a "framework agreement" statement regarding Greenland, market risk appetite has shifted from overnight U.S. stocks to the Asia-Pacific region, leading to broad-based gains in equities while safe-haven assets like precious metals concurrently retreated. During Thursday's Asia-Pacific trading session, South Korea's KOSPI surged by 2%, and Japan's Nikkei 225 rose by 1.87%, with semiconductor stocks emerging as the primary driving force.
Following NVIDIA CEO Jensen Huang's remarks that global AI infrastructure construction will require "trillions of dollars in investment" in the future, buying interest in the semiconductor sector noticeably intensified. Japanese firm Disco, a supplier to NVIDIA, saw its shares skyrocket by up to 17%, while in South Korea, industry giants Samsung Electronics and SK Hynix also registered robust gains exceeding 3%.
The powerful momentum in chip stocks propelled the South Korean KOSPI index above the psychologically significant 5,000-point mark, setting a new historical high and bringing its cumulative monthly gain close to 20%. Apart from the upward cycle in semiconductors, domestic corporate governance reforms in South Korea aimed at addressing the so-called "Korea Discount" are showing positive results, collectively boosting investor confidence. Kiwoom Securities analyst Han Ji-young noted in a recent report that, given valuations remain at reasonable levels, the KOSPI still possesses further upside potential. Ray Wang, an analyst at semiconductor consultancy SemiAnalysis, stated that SK Hynix's fourth-quarter earnings, expected later this month, are "highly likely to exceed expectations." Safe-haven assets came under clear pressure. As tensions surrounding tariffs and geopolitics eased, spot gold fell nearly 1% during the Asia-Pacific morning session, breaking below the $4,800 per ounce level. Spot silver declined by 0.8%.
The U.S. Congress's postponement of the "cryptocurrency bill" for several weeks led to minor declines in cryptocurrencies. Bitcoin approached $89,000 intraday before oscillating around the $90,000 mark.
The reforms directly target the persistent issue of the "Korea Discount." In June of last year, upon taking office, President Lee Jae-myung pledged to tackle corporate governance shortcomings and the "Korea Discount" problem, which has long suppressed the valuation levels of South Korean stocks relative to other markets. The Commercial Act, revised last July, legally mandates that directors consider the interests of all shareholders rather than solely the company's interests. Critics pointed out that the previously termed "company interests" often translated to benefits for family members within the chaebols that dominate the economy. The South Korean government has also implemented tax incentives to encourage higher dividend payouts, as dividend levels from South Korean companies have typically lagged behind those in other markets. The Lee Jae-myung administration is anticipated to announce measures to curb the entrenched voting rights of controlling families, including canceling treasury shares held by companies, aiming to enhance the power of minority shareholders and boost earnings per share.
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