Seoul: South Korean stocks reached an unprecedented high on Friday, driven by significant gains in leading companies Samsung Electronics and SK hynix. The local currency, however, declined sharply to its lowest in over five months. The benchmark Korea Composite Stock Price Index (KOSPI) surged by 61.39 points, or 1.73 percent, closing at 3,610.6, crossing the 3,600 mark for the first time.

According to Yonhap News Agency, this marked the second consecutive record-high close, following the previous session on October 2, when the KOSPI ended at 3,549.21. Trade volume was robust, with 401.5 million shares traded, valued at 19.2 trillion won (approximately US$13.5 billion), with decliners outnumbering gainers 621 to 275.

Foreign investors purchased a net 1.06 trillion won worth of shares, while retail and institutional investors sold shares worth 502 billion won and 594.5 billion won, respectively. Analysts attributed the investor optimism to reports of Samsung Electronics reviving its partnerships with U.S. chipmakers Qualcomm and Intel.

The U.S. government's recent approval of Nvidia's chip sales for U.S. projects in the United Arab Emirates provided a boost to SK hynix shares, as the company is a key supplier to Nvidia. "During the market closure for a week, semiconductor stocks in the U.S. and Japan rose, and this upward trend was reflected in the KOSPI at the same time, benefiting the semiconductor sector," stated Lee Jae-won, an analyst at Shinhan Securities. He also noted forecasts predicting an upcoming supercycle in the memory industry.

Samsung Electronics saw a significant rise of 6.07 percent to 94,400 won, while SK hynix soared 8.22 percent to 428,000 won. Hanmi Semiconductor, a supplier of chipmaking equipment, rose sharply by 18.39 percent to 119,100 won. The recent surge propelled Samsung Electronics' market value above 550 trillion won and SK hynix's market value past 300 trillion won.

Other notable gainers included top internet company Naver, which increased by 5.73 percent to 267,500 won, and Kakao, which advanced by 4.19 percent to 62,100 won. Doosan Enerbility, a power plant manufacturer, surged 14.97 percent to 74,500 won, while major shipbuilder Samsung Heavy Industries rose 2.52 percent to 22,400 won.

K-pop powerhouse Hybe gained 1.87 percent to 272,500 won, and content production studio CJ ENM advanced 1.14 percent to 71,100 won. In contrast, defense companies saw declines following a ceasefire agreement in the Middle East. Industry leader Hanwha Aerospace fell by 5.01 percent to 1.04 million won, and LIG Nex1 dropped 4.95 percent to 480,000 won.

Major automaker Hyundai Motor decreased by 1.36 percent to 217,000 won, and its sister company Kia fell 3.45 percent to 100,600 won. The local currency was quoted at 1,421 won against the U.S. dollar at 3:30 p.m., down 21 won from the previous session, marking its lowest level since April 30, when it was also 1,421 won.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys increased by 1 basis point to 2.591 percent, while the return on the benchmark five-year government bonds rose by 0.2 basis point to 2.731 percent.