Seoul: South Korean shares surged 4.6 percent to a more than five-week high Monday as OpenAI's new-generation model fueled demand for artificial intelligence (AI)-related shares. The Korean won rose against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed up 308.18, or 4.61 percent, to 6,995.39, extending its winning streak to three sessions. This marked the highest closing since July 23, when the KOSPI finished at 7,096.89. Trade volume was light at 237.9 million shares worth 21.5 trillion won (US$16 billion), with gainers outnumbering decliners 476 to 380.
The index was bolstered by foreign and institutional investors, who purchased a net 2.55 trillion won and 2.64 trillion won, respectively. In contrast, individual investors sold off a net 6.83 trillion won. The index had started the day 3.34 percent higher, buoyed by the launch of OpenAI's new GPT-6 Astra, anticipated to increase demand for memory chips.
While three major U.S. stock indexes closed lower on Friday, the PHLX semiconductor index rose 3.38 percent. "Despite sluggish major tech and software shares on Wall Street, investor sentiment was stoked by OpenAI's new Astra, which could open up the artificial general intelligence (AGI) era," said Kang Jin-hyuk, a senior analyst at Shinhan Securities.
Semiconductor shares were among the biggest gainers, with industry leader Samsung Electronics jumping 5.68 percent to 270,000 won and its competitor SK hynix soaring 8.26 percent to 1.78 million won. Hanmi Semiconductor, a leading chip equipment maker, rose 4.57 percent to 240,500 won, and SK Square, parent of SK hynix, vaulted 8.07 percent to 1.13 million won.
Top carmaker Hyundai Motor added 2.48 percent to 393,000 won, and its auto parts affiliate Hyundai Mobis climbed 2.37 percent to 432,000 won. Bank shares were also positive, with Hana Financial Group advancing 3.43 percent to 138,900 won and Shinhan Financial Group increasing 3.26 percent to 113,900 won.
Defense firms had mixed results, as LIG DandA gained 1.07 percent to 659,000 won, while Hanwha Aerospace fell 1.52 percent to 1.04 million won. The Korean won was quoted at 1,340.5 won against the U.S. dollar as of 3:30 p.m., up 9.9 won from the previous stock trading session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.6 basis points to 3.900 percent, and the return on the benchmark five-year government bonds added 1.9 basis points to 4.120 percent.