Seoul: South Korean stocks closed at a fresh high above the landmark 8,800-point level on Tuesday as tech shares continued to advance, driven by optimism over artificial intelligence (AI) led by chip giant Samsung Electronics. This surge offset a market-wide profit-taking mode, although the local currency fell sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 13.11 points, or 0.15 percent, to close at 8,801.49.
According to Yonhap News Agency, the index opened higher and climbed to a record intraday high of 8,933.62 before reversing course. It fell nearly 3 percent at one point amid profit-taking but later recouped part of its losses to end the session slightly higher. Trade volume was heavy, with 626.03 million shares worth 67.5 trillion won (US$44.4 billion) changing hands, and losers outnumbering winners 635 to 269.
Institutions and individuals bought a net 242.27 billion won and 6.34 trillion won, respectively, while foreigners sold a net 6.59 trillion won. Investors remained cautious about developments in efforts to reach a peace agreement between the United States and Iran after three months of conflict, as continued uncertainty surrounding the Strait of Hormuz kept energy prices elevated.
Overnight, U.S. stocks finished higher, with major indexes reaching fresh record highs as a rally in technology shares lifted market sentiment. U.S. chip giant Nvidia surged more than 6 percent after Chief Executive Officer Jensen Huang unveiled a new AI processor designed to run local agentic AI applications on personal computers.
Lee Kyung-min, an analyst at Daishin Securities, noted, "The local stock market experienced heightened volatility as investors locked in profits following the recent sharp rally. Continued foreign selling weighed on share prices, particularly among stocks that had posted strong gains in recent weeks." Large-cap shares were mixed, with market bellwether Samsung Electronics rising 3.3 percent to a fresh record high, while rival chipmaker SK hynix edged down slightly.
Automaker Hyundai Motor shed 2.8 percent, and electronic components maker Samsung Electro-Mechanics plunged 9.58 percent. Shares of companies linked to Nvidia CEO Jensen Huang advanced on expectations of potential AI partnerships during his visit to South Korea later this week.
Naver increased 3.31 percent, and Doosan Robotics jumped 20.45 percent. Samsung Life Insurance surged 17.07 percent following signals of a potential interest rate hike by the Bank of Korea. Hanwha Aerospace retreated 5.98 percent after being ordered to suspend operations at its Daejeon factory following a deadly explosion. The Korean won was quoted at 1,517.3 won against the U.S. dollar, down 13 won from the previous session. Bond prices closed higher, with yields on three-year Treasurys and five-year government bonds falling.