South Korea's KOSPI index surged 12.84% to close at 6,311.81 on Thursday, driven by significant gains in major semiconductor stocks. Shares of SK Hynix climbed 22.39% to 1.618 million Korean won (about $1,130), while Samsung Electronics rose 18.84% to 246,000 won (about $171), prompting a trading halt due to volatility.
Key Details
In addition to the KOSPI's rise, Japan’s Nikkei 225 index increased by 4.70% to 64,774.37. The positive momentum in Asian markets coincided with gains in U.S. stock futures, with Dow futures up 151 points, or 0.29%, and S&P 500 futures rising 23.75 points, or 0.32%. Oil prices also saw an uptick, with WTI crude rising 0.55% to $84.05 per barrel and Brent crude gaining 0.74% to $89.69 per barrel.
Background
The surge in semiconductor stocks followed a strong performance from Microsoft, which reported a 15.51% increase in shares after announcing better-than-expected growth in its Azure cloud services. This growth has also positively impacted AI-linked chipmakers, as evidenced by the iShares Semiconductor ETF gaining more than 8% during the regular session.
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The significant rise in the KOSPI and semiconductor stocks could indicate a bullish sentiment in technology sectors, particularly for companies like Samsung and SK Hynix that are critical to global supply chains. Investors may also react to the broader implications for tech stocks in the U.S. as they assess the impact on semiconductor supply and demand.
Watch for upcoming earnings reports from major tech companies, which may provide further insights into market trends and performance expectations.