Seoul: South Korean stocks soared to a fresh record high as optimism surrounding the upcoming Seoul-Washington summit and a potential supply agreement with Nvidia drove market sentiment. The local currency also gained strength against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) surged by 70.74 points, or 1.76 percent, closing at 4,081.15. The trading session saw high volumes, with 461 million shares valued at 21 trillion won (US$14.6 billion) changing hands. The market experienced more decliners than advancers, with 564 stocks falling and 304 rising.
Foreign investors sold a net 227.3 billion won worth of local shares, while individual investors offloaded a net 4,361.8 billion won. In contrast, institutional investors purchased a net 641.1 billion won. Investor interest in technology shares grew amid speculation that Samsung Electronics and SK Group might strengthen their collaboration with Nvidia in the field of artificial intelligence (AI).
Nvidia's CEO, Jensen Huang, who is set to attend the Asia Pacific Economic Cooperation (APEC) CEO Summit this week, is expected to engage with business leaders during his visit. Market attention was particularly focused on potential discussions around an AI chip supply deal involving Samsung Electronics, SK Group, and Hyundai Motor Group, as highlighted by Seo Sang-young, an analyst at Mirae Asset and Securities.
Amid these developments, President Lee Jae Myung met with U.S. President Donald Trump in Gyeongju, where tariff issues were among the significant topics on the agenda. However, detailed outcomes from the meeting have not yet been disclosed.
Key tech stocks reflected the positive market sentiment, with Samsung Electronics rising by 1.01 percent to 100,500 won and SK hynix climbing by 7.1 percent to 558,000 won. Other notable gainers included LG Energy Solution, which increased by 0.78 percent to 514,000 won, and Samsung SDI, which saw a 6.09 percent rise to 331,000 won. In the internet sector, leading search engine Naver advanced by 4.74 percent to 265,000 won, while Kakao experienced a jump of 6.28 percent to 67,700 won.
The local currency was quoted at 1,431.7 won per U.S. dollar at 3:30 p.m., marking an increase of 6 won from the previous session. Meanwhile, bond prices ended lower, with the yield on three-year Treasurys rising by 4.4 basis points to 2.677 percent, and the return on the five-year government bonds increasing by 4.7 basis points to 2.798 percent.