KOSPI jumps 2.7% to one-month high as chip stocks rally on AI demand

South Korean stocks surged to their highest level in a month on Tuesday, extending gains for a sixth consecutive session. The benchmark KOSPI index climbed 2.73%, or 190.63 points, to 7,168.57, buoyed by a sharp rally in semiconductor stocks.

Chipmakers led the advance, tracking an overnight uptick in US peers. The Philadelphia Semiconductor Index rose 1.6% on Monday, with Micron Technology adding 4% and Applied Materials climbing 5.5%, despite broader Wall Street weakness. Investors are now awaiting quarterly results from Nvidia, the world's most valuable company, due next week.

Samsung Electronics rose 3.01%, while peer SK Hynix jumped 7.72%, leading the benchmark higher. Other index heavyweights were mixed, with battery maker LG Energy Solution sliding 2.03%, while Hyundai Motor was unchanged and Kia Corp fell 0.56%. POSCO Holdings shed 0.75% and Samsung BioLogics declined 1.03%.

Market breadth was negative, with 281 issues advancing against 603 decliners among the 906 traded stocks. Foreign investors were net buyers, purchasing shares worth 1.1 trillion won ($780.58 million).

The Korean won strengthened 0.43% against the dollar, quoted at 1,409.5 per dollar on the onshore settlement platform. In the bond market, the three-year treasury yield rose 9.5 basis points to 3.864%, while the benchmark 10-year yield climbed 10.2 basis points to 4.402%.