South Korea’s stock market witnessed a remarkable rally on Tuesday, as a renewed enthusiasm for artificial intelligence (AI) propelled investor sentiment. The Kospi index surged 3.09%, closing at 5,638.34—marking its most significant daily increase since February.
The substantial rise of 168.87 points follows a challenging October for the index, which had been on course for a decline of approximately 17%. The upward momentum was largely fueled by the impressive gains of major players in the tech sector, particularly Samsung Electronics and SK Hynix, which collectively account for nearly half of the Kospi’s market capitalization.
Samsung Electronics experienced a notable increase of 4.23%, closing at 222,000 won, while SK Hynix saw a robust gain of 5.18%, finishing at 1.34 million won. The optimism wasn’t limited to these giants; other tech-related shares also benefited, with SK Square, the parent company of SK Hynix, jumping 7.67% and Samsung Electro-Mechanics rising 7.42%.
The catalyst for this market surge was the recent IPO filing by Anthropic, a company renowned for its Claude AI models. Released just before the US market opened, the filing indicated strong revenue growth, rekindling investor interest in the AI sector. This optimism rippled through US tech stocks, with the Nasdaq Composite rising approximately 1% and the Philadelphia Semiconductor Index gaining close to 3%.
Investor sentiment had been dampened by concerns regarding AI funding and profitability, but the Anthropic filing provided a refreshing glimpse into the sector’s financial health. Notably, foreign investors purchased a net 592.97 billion won in shares, while institutions added 280.38 billion won, even as individual investors sold a net 947.78 billion won.
Additionally, falling oil prices contributed positively to the market, with reports of Qatari mediation between Iran and the United States sparking hopes of reduced tensions in the Middle East.
In a noteworthy event, the Korea Exchange triggered a buy-side sidecar at 10:13 a.m., pausing program buy orders for five minutes, a move not seen in several sessions.
Looking ahead, both Samsung and SK Hynix are reportedly planning to kick off mass production and shipments of eight-layer HBM4 chips for Nvidia in the second quarter of 2027. Furthermore, SK Hynix is considering a special dividend of around 16 trillion won, potentially funded by gains from its stake in Kioxia, although no final decision has been made. The company has indicated it will update shareholders during its upcoming earnings report.
On the earnings front, SK Hynix is set to report its third-quarter results on October 28, followed by Samsung Electronics on October 29. Investors will be keenly watching these announcements for further insights into the health of these tech giants and their strategies moving forward.
