Seoul: South Korean stocks opened at a fresh record high Monday, easily breaching the 7,700-point mark, buoyed by an extended rally of blue chip semiconductor shares, despite concerns over the potential breakdown of the U.S.-Iran peace deal.
According to Yonhap News Agency, after briefly surpassing another historic milestone of 7,800, the benchmark Korea Composite Stock Price Index (KOSPI) had risen 265.27 points, or 3.54 percent, to 7,763.27 points as of 9:15 a.m. This follows its near breach of the 7,500-point threshold last Friday, when it closed at a peak of 7,498 points, continuing its record-breaking trend.
The stock surge occurred even after U.S. President Donald Trump announced his inability to accept Iran's peace proposal, raising fears of a potentially failed peace agreement between the United States and Iran. Despite these geopolitical tensions, major chipmakers in South Korea experienced a bullish start, following recent gains on Wall Street.
On Friday, major U.S. stock indexes closed higher, driven by a surge in chip and artificial intelligence (AI) shares. In particular, Micron soared 15.49 percent, AMD jumped 11.44 percent, and Nvidia rose 1.75 percent. In Seoul, market leader Samsung Electronics surged 5.21 percent, with its chipmaking rival SK hynix skyrocketing 8.54 percent. AI investment firm SK Square increased 5.37 percent, and trading firm Samsung C and T advanced 7.93 percent.
However, not all sectors shared in the gains. Leading battery maker LG Energy Solution dipped 2.1 percent, while its smaller rival Samsung SDI lost 2.73 percent. Electrical shares also faced declines, with HD Hyundai Electric down 2.28 percent and LS Electric dropping 2.08 percent.
In the automotive sector, Hyundai Motor remained flat, but its sister company Kia climbed 2.67 percent, and its auto-parts affiliate Hyundai Mobis escalated 4.52 percent. Defense giant Hanwha Aerospace rose 2.91 percent, while major shipbuilder HD Hyundai Heavy gained 3.34 percent.
The Korean won was trading at 1,467.9 won against the U.S. dollar at 9:15 a.m., marking an increase of 3.8 won from the previous session.