Seoul: South Korean stocks closed over 1 percent higher on Tuesday, achieving a new record high for the fifth consecutive session due to a rally in chip shares and increased foreign buying. The Korean won also rose against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 42.31 points, or 1.24 percent, to close at an all-time high of 3,449.62.

According to Yonhap News Agency, this marked the fifth consecutive session the KOSPI achieved a new all-time high and the 11th straight session of increase. Trade volume was significant at 398.4 million shares, valued at 13.8 trillion won (US$10 billion), with losers surpassing winners 568 to 297. Foreign investors purchased over 1.7 trillion won in local shares while institutions acquired 78.8 billion won, contrasting with retail investors who sold 1.76 trillion won for profit-taking. “The KOSPI soared on the back of massive purchase by foreign investors and the strong performance of chip shares,” commented Lee Kyoung-min, an analyst at Daishin Securities.

Blue chip tech shares advanced on optimism regarding U.S. rate cuts and expectations for the South Korean government’s policy road map, which aims to foster advanced industries, Lee explained. Overnight, Wall Street showed gains amid hopes that the U.S. Federal Reserve will cut its key rates this week. The Dow Jones Industrial Average increased by 0.11 percent, the tech-heavy Nasdaq composite rose by 0.94 percent, and the S and P 500 added 0.47 percent.

In particular, electric vehicle giant Tesla rose 3.56 percent, and Alphabet, the parent company of Google, increased by 4.3 percent. In Seoul, chip shares maintained their rally, with Samsung Electronics rising 3.79 percent to a new yearly high of 79,400 won, and SK hynix climbing 5.14 percent to reach a record high of 348,000 won.

Defense shares were strong, with industry leader Hanwha Aerospace increasing by 5.58 percent to 1.04 million won, Hyundai Rotem rising 3.72 percent to 223,000 won, and LIG Nex1 surging 9.49 percent to 542,000 won. Power plant manufacturer Doosan Enerbility jumped 7.65 percent to 63,300 won, while SK Square, an investment firm for the semiconductor and IT sectors, advanced 2.74 percent to 206,000 won.

Shipbuilders also saw gains, with HD Hyundai Heavy up 0.9 percent to 503,000 won, Hanwha Ocean rising 1.19 percent to 110,800 won, and HD Korea Shipbuilding increasing by 1.09 percent to 416,000 won. However, leading battery maker LG Energy Solution fell 1.69 percent to 349,500 won, and Kakao, the country’s top mobile messenger operator, decreased by 1.72 percent to 62,900 won.

The local currency traded at 1,378.9 won against the greenback at 3:30 p.m., up 10.1 won from the previous session.