FX.co ★ South Korea Shares Hit Record High on Trade Hopes and Chip Rally

On Monday, the benchmark KOSPI Index surged by 2%, breaking the 4,000 mark for the first time ever as optimism surrounding US-China trade negotiations and robust demand for semiconductor stocks bolstered market sentiment. Anticipation grew for the upcoming meeting between Presidents Trump and Xi at the APEC summit in Korea, following reports indicating that US and Chinese negotiators had laid out a preliminary framework. This framework could potentially prevent the implementation of planned US tariffs and include a postponement of China's export controls on rare earth materials. The positive sentiment was in line with strong advances on Wall Street and other Asian markets, driven by hopes that easing trade tensions might enhance regional economic growth. Domestically, major semiconductor producers such as Samsung Electronics (+2.4%) and SK Hynix (+3.6%) continued their upward trajectory fueled by sustained demand in AI technology. Meanwhile, Hyundai Motor (+1.6%), HD Hyundai Heavy Industries (+6.1%), and KB Financial Group (+2.7%) also experienced gains, indicating widespread strength across leading sectors.