Seoul: South Korean stocks reached a record high Wednesday amid optimism surrounding the upcoming Seoul-Washington summit and a potential supply deal with Nvidia. The local currency also showed strength against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose by 70.74 points, or 1.76 percent, closing at 4,081.15.
According to Yonhap News Agency, trade volume was substantial, with 461 million shares valued at 21 trillion won (US$14.6 billion). The market saw 564 losers against 304 gainers. Foreign investors sold a net 227.3 billion won in local shares, while individual investors offloaded a net 4361.8 billion won. Conversely, institutional investors purchased a net 641.1 billion won in shares.
Investors showed strong interest in tech stocks, encouraged by reports suggesting that Samsung Electronics and SK Group might strengthen their collaboration with Nvidia in the artificial intelligence sector. Nvidia's CEO, Jensen Huang, is expected to engage with business leaders during his attendance at the Asia Pacific Economic Cooperation (APEC) CEO Summit this week.
Market interest was particularly focused on reports indicating that Nvidia could finalize an AI chip supply agreement with Samsung Electronics, SK Group, and Hyundai Motor Group. Seo Sang-young, an analyst at Mirae Asset and Securities, highlighted this development.
On the diplomatic front, President Lee Jae Myung met with U.S. President Donald Trump in Gyeongju to discuss tariff issues and other agenda items. Details of the summit's outcomes are yet to be disclosed.
Among notable market movements, Samsung Electronics saw a 1.01 percent increase to 100,500 won, while SK hynix rose 7.1 percent to 558,000 won. LG Energy Solution and Samsung SDI also experienced gains, climbing 0.78 percent to 514,000 won and 6.09 percent to 331,000 won, respectively. Additionally, Naver and Kakao recorded increases of 4.74 percent to 265,000 won and 6.28 percent to 67,700 won, respectively.
The local currency was reported at 1,431.7 won against the U.S. dollar at 3:30 p.m., showing an increase of 6 won from the previous session.