Global Market: South Korean shares jump 3% as chipmakers rally on strong exports, AI demand

Chipmakers lead South Korea’s market rebound as strong export data and AI optimism lift sentiment.

The benchmark KOSPI climbed 168.52 points, or 3.03%, to 5,721.26 as of 0121 GMT. The index had closed at its lowest level since April 7 in the previous session.

South Korea's exports more than doubled in the first 20 days of October from a year earlier, driven by record semiconductor sales amid rising global investment in AI, customs data showed.

Technology stocks also drew support from a strong outlook for AI infrastructure spending. Super Micro Computer surged in after-hours trading on Tuesday after the server maker forecast quarterly revenue and profit margins well above Wall Street estimates, citing robust demand for AI data centres. The outlook lifted sentiment across AI-related stocks.

Samsung Electronics gained 5.08%, while rival SK Hynix advanced 6.13%, leading the broader market recovery.

According to Reuters, the rebound also reflected a technical recovery after the previous session's losses, easing pressure from oil prices and bond yields, and strength in US semiconductor stocks following Super Micro Computer's upbeat forecast.

Among other major stocks, battery maker LG Energy Solution slipped 0.36%. Hyundai Motor fell 0.65%, while Kia Corp declined 2.14%. POSCO Holdings shed 0.17%, while Samsung BioLogics rose 1.22%.

AI infrastructure firm Elice Group surged 30%, recovering sharply after tumbling during its market debut on Tuesday.

Market breadth remained negative despite the benchmark's strong gains. Of the 913 stocks traded, 366 advanced and 495 declined.

Foreign investors were net buyers of South Korean shares worth 215.8 billion won ($162.70 million), providing additional support to the market.

In currency markets, the South Korean won was quoted at 1,326.0 per dollar on the onshore settlement platform, unchanged from its previous close.

Bond yields edged lower. The yield on the most liquid three-year Korean Treasury bond fell 0.7 basis points to 3.828%, while the benchmark 10-year yield declined 5.6 basis points to 4.160%.