Kospi Jumps 4.8% in Early Trade to Retake 7,500; Samsung Electronics, SK Hynix Gain

Won-Dollar Exchange Rate Falls Below 1,500

South Korea’s Kospi jumped more than 4% in early trading on May 21 as oil prices fell, Treasury yields steadied and concerns over a strike at Samsung Electronics eased.

As of 9:06 a.m., the Kospi was up 342.41 points, or 4.75%, at 7,551.36.

The sharp rebound came after New York stocks rallied across the board as surging US Treasury yields and international oil prices moderated. Investor sentiment in Seoul also improved after Samsung Electronics and its labor union reached a dramatic wage agreement the previous night, removing the threat of a strike.

Technology shares also drew support from strong earnings at Nvidia, a leading global artificial intelligence stock. The company posted record quarterly revenue for a 12th straight quarter. Adjusted earnings per share came in at $1.87, topping Wall Street estimates of $1.76.

In the Kospi market, retail investors were net buyers of 871.4 billion won and institutions bought a net 57.9 billion won as of that time. Foreign investors were net sellers of 979.8 billion won.

Samsung Electronics and SK Hynix both rebounded. Samsung Electronics rose 4.89% to 289,500 won, while SK Hynix gained 4.07% to 1.816 million won.

Samsung Electro-Mechanics climbed 12.06%, Hyundai Mobis advanced 16.45%, Samsung Life Insurance rose 10.58%, Samsung C&T added 10.26% and LG Electronics gained 9.17%.

The Kosdaq also rose more than 4%. As of that time, the index was up 4.49% at 1,103.5. Machinarocks, which entered the stock market the previous day after quadrupling from its IPO price, surged to the daily limit again in early trading.

The won strengthened past 1,500 against the dollar. In Seoul trading, the won opened at 1,499.5 per dollar, up 7.3 won from the previous session.

Noh Jung-dong, Hankyung.com reporter, dong2@hankyung.com