Kospi Tops 7,100 as US Chip Stocks Rise, Hopes Grow for Easing Middle East Tensions

The Kospi rose more than 1% in early trading on September 23, climbing above the 7,100 mark as gains in US semiconductor shares and hopes for easing geopolitical tensions in the Middle East lifted sentiment.

As of 9:10 a.m., the Kospi was up 115.45 points, or 1.65%, at 7,133.36 from the previous session.

On the main board, foreign and institutional investors were net buyers of 212.9 billion won and 53.3 billion won, respectively, leading the advance. Individuals were net sellers of 275 billion won.

Overnight strength in artificial intelligence and semiconductor stocks on Wall Street also supported South Korean equities. Micron Technology rose 5.0% in New York, while Nvidia gained 0.66%. The Philadelphia Semiconductor Index added 2.06%.

Hopes that tensions between the US and Iran could ease also underpinned investor sentiment. International oil prices fell after reports said Iran had proposed reopening the Strait of Hormuz within a week on the condition that US military pressure be eased. Brent crude for November delivery and West Texas Intermediate for October delivery fell 1.1% and 1.2%, respectively, slipping below $100 a barrel.

Among large-cap stocks, Samsung Electronics and SK Hynix advanced, along with SK Square, Samsung Electro-Mechanics, LG Energy Solution, Hyundai Motor, KB Financial Group, Samsung C&T and Samsung Life Insurance. Samsung Biologics and Doosan Enerbility traded lower.

The Kosdaq also moved higher. At the same time, the Kosdaq index rose 10.63 points, or 1.27%, to 845.01.

On the Kosdaq market, individuals were net buyers of 54.5 billion won, while foreign and institutional investors were net sellers of 35.6 billion won and 13.8 billion won, respectively.

Among individual stocks, Alteogen, Ecopro, Ecopro BM, Jusung Engineering, Rainbow Robotics, Wonik IPS and EO Technics rose. Leeno Industrial and Simtech fell.