Seoul Shares Open Sharply Higher on Tech Gains Despite Middle East Tensions
Key Takeaways
- •The KOSPI rose 222.40 points, or 3.33 percent, to 6,909.61 as of 9:15 a.m. Monday.
- •Chip stocks rallied after OpenAI's GPT-6 Astra release lifted the PHLX semiconductor index 3.38 percent on expected memory chip demand.
- •Samsung Electronics climbed 4.4 percent, SK hynix gained 5.89 percent, Hanmi Semiconductor rose 5.22 percent, and LG Electronics surged 8.44 percent.
- •US-Iran military attacks intensified near the Strait of Hormuz, a key oil shipping chokepoint that historically pressures investor sentiment.
- •The Korean won strengthened 5 won to 1,344.8 against the US dollar.
South Korean stocks opened sharply higher on Monday, driven by gains in technology shares, despite heightened military tensions in the Middle East.
The benchmark Korea Composite Stock Price Index rose 222.40 points, or 3.33 percent, to 6,909.61 as of 9:15 a.m.
Overnight, military attacks intensified between the United States and Iran. Tehran said it targeted three oil tankers using an unauthorized route through the Strait of Hormuz, as well as several US-linked vessels, in retaliation for US attacks on Iranian tankers. The Strait of Hormuz is one of the world's most important oil shipping chokepoints, and flare-ups there have historically weighed on global investor sentiment by raising supply-disruption concerns.
On Friday, US stocks closed lower on strong job data, which raised the possibility of rate hikes by the Federal Reserve. The Dow Jones Industrial Average fell 0.51 percent, and the Nasdaq Composite lost 0.29 percent.
However, the PHLX semiconductor index rose 3.38 percent following the release of OpenAI's new GPT-6 Astra, which is expected to boost demand for memory chips. South Korea's Samsung Electronics and SK hynix are among the world's largest memory chipmakers, making Seoul's market especially sensitive to shifts in global semiconductor demand.
In Seoul, tech shares led the strong opening. Chip giant Samsung Electronics jumped 4.4 percent, while its rival SK hynix soared 5.89 percent. Hanmi Semiconductor, a leading chip manufacturing equipment firm, vaulted 5.22 percent, and LG Electronics surged 8.44 percent.
Beyond technology, top carmaker Hyundai Motor advanced 1.96 percent and defense giant Hanwha Aerospace climbed 1.04 percent. Defense names such as Hanwha Aerospace have drawn investor attention during periods of escalated geopolitical conflict.
In the currency market, the Korean won was trading at 1,344.8 won against the US dollar as of 9:15 a.m., up 5 won from the previous stock trading session. (Yonhap)
