The South Korean benchmark Kospi surged over 8 percent on Thursday, driven by improved investor sentiment after the country's memory chip giant Samsung Electronics averted a strike through a last-minute labor agreement.
The Kospi closed 8.42 percent higher at 7,815.59, according to the Korea Exchange. The index opened 3.85 percent higher as investors priced in a labor truce at Samsung Electronics, the market's biggest heavyweight. An overnight rebound in US semiconductor stocks following stronger-than-expected earnings from Nvidia added further support.
Chip-led momentum broadened into other large-cap stocks, extending the rally across the benchmark throughout the session.
Amid the rally, a buy-side sidecar was triggered on the Kospi at 9:24 a.m. after Kospi 200 futures surged 5.04 percent from the previous session. The buying curb was also activated on the Kosdaq at 9:27 a.m., marking the first time since April 1 that sidecars had been triggered on both markets.
Foreign investors were net sellers of 243.4 billion won ($162 million) on the Kospi, extending their selling streak for an 11th consecutive session. Retail investors also offloaded a net 2.63 billion won in profit taking, while institutional investors alone purchased a net 2.88 trillion won, lifting the benchmark index.
Semiconductor heavyweights led the rebound. Samsung Electronics shares climbed 8.51 percent to 299,500 won, just before the 300,000 won mark.
Shares of SK hynix also rose 11.17 percent to 1.94 million won, while its affiliate SK Square gained 14.58 percent to 1.179 million won.
Chip-led buying momentum spread across large-cap shares throughout the market.
Hyundai Motor rose 11.66 percent to 661,000 won. LG Energy Solution inched up 4.29 percent to 401,000 won.
Shares of Samsung Group affiliates also surged. Samsung Electro-Mechanics and Samsung Life Insurance jumped 13.48 percent and 13.78 percent to 1.204 million won and 355,000 won, respectively.
A surge in Samsung Group shares pushed the combined market capitalization of listed affiliates to 2,205.85 trillion won, well above the 2,000 trillion won mark as of closing. The group's market cap represents 39.83 percent of the total value of Korea's equity markets.
The Kosdaq also posted sharp gains. The junior bourse closed 4.73 percent higher at 1,105.97. During trading, it climbed to as high as 1,115.66.
silverstar@heraldcorp.com
