FX.co ★ South Korean Shares Rally to Record High on Trade Deal, Tech Gains

On Thursday, the benchmark KOSPI index climbed by 1.7%, reaching a new peak of 3,720. This uptick was fueled by optimism regarding trade discussions between Seoul and Washington, alongside robust performances in major technology shares. Market sentiment brightened following statements from officials in the US and South Korea, which indicated progress towards a tentative agreement. Such an agreement could potentially alleviate tariffs on Korean exports and boost the flow of investments. On the corporate landscape, global chip momentum showed further strength due to renewed demand driven by artificial intelligence advancements. This trend followed positive financial results from prominent US and European semiconductor companies, enhancing confidence in Korea's technology sector. Samsung Electronics achieved a record high, increasing by 2.3%, while SK Hynix experienced a 4.0% climb. Moreover, automotive stocks experienced a surge as investors speculated on possible advantages stemming from a projected reduction in tariffs from 25% to 15%. Hyundai Motor saw a significant increase of 7.6%, and Kia Corporation rose by 6.6%, making them among the day's top performers.