South Korean shares hit record highs on Monday, as chipmakers extended gains amid optimism over artificial intelligence, bolstered by a rally in US peers and upbeat data.
The benchmark KOSPI rose as much as 5.05 percent in early trade to an all-time high of 7,876.60 in morning trade. During the session, a trading curb was activated by sharp gains in the index.
Samsung Electronics 005930.KS rose more than 5 percent and SK Hynix gained more than 10 percent, with both chipmakers hitting record levels.
Last week, the KOSPI rose 13.6 percent, the biggest weekly jump since late 2008. It has risen 85 percent so far this year, after rising 76 percent last year, as South Korea has emerged as the world's best-performing stock market amid an AI boom.
The Philadelphia Semiconductor Index rose 5.5 percent on Friday, as chipmaker Micron Technology surged 15.5 percent, while Apple and Intel also rallied on a report of their deal on chip production.
South Korea's exports rose 43.7 percent in the first 10 days of this month from a year earlier, led by a 150 percent surge in chip sales, trade data showed on Monday.
"There is profit-taking pressure rising among all investor groups, so it is necessary to note that short-term volatility can grow in semiconductor stocks as the KOSPI extends gains this week," said Han Ji-young, an analyst at Kiwoom Securities.
The KOSPI's rally on Monday compared with Japan's Nikkei and Taiwanese stocks .TWII rising less than 1 percent, while US stock futures fell in Asian trading hours amid uncertainty over the geopolitical conflict in the Middle East.
It was led by retail investors, whose net purchases totalled 1.2 trillion won ($815.66 million), while foreigners were net sellers.
Among other sectors, automakers and battery manufacturers gained. Still, of the total 894 traded issues, 197 shares advanced, while 681 declined.
The won was quoted at 1,469.4 per dollar on the onshore settlement platform, 0.48 percent lower than its previous close at 1,462.3.
The most liquid three-year Korean treasury bond yield rose by 0.6 basis point to 3.567 percent, while the benchmark 10-year yield fell by 0.1 bp to 3.911 percent.
Reuters
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