Kospi Reclaims 7,500 as US Tailwinds Boost Chip Stocks

Top 10 Stocks by Market Capitalization All Advance

South Korean stocks climbed on July 10, lifted by positive cues from the US. The Kospi rebounded above the 7,500 mark intraday as expectations grew for renewed US-Iran talks and worries about a slowdown in the artificial intelligence investment cycle eased. Samsung Electronics and SK Hynix, along with other market heavyweights, led the gains.

As of 10:18 a.m., the Kospi was trading at 7,515.81, up 3.07% from the previous session. The benchmark opened at 7,552.49 and rose as high as 7,562.96 during the session. The Kosdaq was up 5.18% at 835.09 at the same time.

Institutional investors were driving the advance. They were net buyers of 590 billion won on the Kospi, while retail investors also turned net buyers with purchases of 100 billion won. Foreign investors, who bought a net 130 billion won a day earlier, were net sellers of 680 billion won as they locked in profits.

Market breadth was firmly positive, with 804 stocks rising and 81 falling. All 10 of the market's largest companies by capitalization were higher. Samsung Electronics gained 4.05%, SK Hynix rose 1.14%, SK Square added 4.82%, Samsung Electronics preferred shares climbed 3.39%, Samsung Electro-Mechanics advanced 8.31%, Hyundai Motor rose 3.37%, LG Energy Solution gained 4.47%, Samsung Life Insurance added 3.83%, KB Financial Group jumped 8.11%, and Samsung Biologics rose 5.21%.

The rally came as expectations for renewed talks between the US and Iran gathered pace, while US semiconductor and big tech shares also advanced. Micron announced an additional $250 billion investment in the US, and Meta unveiled plans to expand production of its in-house AI chips and computing infrastructure, easing concerns about a slowdown in the AI investment cycle.

The Philadelphia Semiconductor Index has now rebounded for two straight sessions, improving sentiment toward South Korean chipmakers including Samsung Electronics and SK Hynix. The Kospi's roughly 9% correction in a short period also encouraged bargain hunting.

Han Ji-young, an analyst at Kiwoom Securities, said the Kospi was set to remain strong on expectations for a return to US-Iran negotiations, a two-session rebound in the Philadelphia Semiconductor Index, gains of more than 4.5% in overnight Kospi 200 futures and bargain-buying after the market's 9% correction this week.

Kang Kyung-ju, Hankyung.com reporter, qurasoha@hankyung.com