South Korean stocks surged by over 3% on Wednesday, recovering from prior losses as concerns surrounding artificial intelligence (AI) spending eased, leading to a boost in semiconductor shares. The Korea Composite Stock Price Index (KOSPI) rose 3.29%, closing at 5,735.66, an increase of 182.92 points. This significant rally led to a temporary suspension of program buying by the Korea Exchange after KOSPI 200 futures climbed more than 5%, a measure not enacted in the past two months.
Investor confidence was bolstered by better-than-expected earnings from the US-based AI server manufacturer Super Micro Computer, which helped allay fears about substantial investments in AI infrastructure. This positive sentiment had a ripple effect on major South Korean technology companies. Samsung Electronics saw its shares increase by 5.67% to 223,500 won, while SK hynix shares rose 5.81% to 1.29 million won. SK Corp., SK Group’s holding company, experienced a significant rebound, climbing 12.62% to 482,000 won after a previous session decline.
Contributing to the market’s positive momentum, LS Electric’s shares surged 7.02% to 166,100 won, following stronger-than-expected third-quarter earnings, driven by rising demand for power equipment in AI data centers. However, not all sectors experienced gains; defense company LIG D&A fell 9.03% to 498,500 won after being barred from bidding on defense contracts for two years due to bribery allegations by South Korea’s arms procurement agency.
Foreign investors played a significant role in the market’s recovery, purchasing a net 659.96 billion won worth of South Korean shares. Meanwhile, the Korean won strengthened slightly against the US dollar, trading at 1,325.2, an increase of 0.8 won from the previous session.
The rebound in South Korean stocks highlights renewed investor confidence in technology stocks, with robust corporate earnings helping to ease concerns about AI infrastructure expenditures and broader market pressures.