Micron's Surprise Earnings Boost South Korean Chip Stocks; Oil, Rates Also Ease

South Korea's stock market experienced a significant rebound, with the KOSPI index soaring over 5% to approach the 9000-point level. This surge was largely driven by a surprise earnings announcement from U.S. memory chipmaker Micron Technology. The positive news injected renewed confidence into the semiconductor sector, which had been a focal point for artificial intelligence (AI) investment.

Leading the charge was SK Hynix, a major South Korean semiconductor firm. The company's stock price jumped more than 13%, pushing its market capitalization back above 200 trillion won. Other related stocks within the SK Group also saw substantial gains, with SK Inc. climbing over 20% and SK Square, a major shareholder of SK Hynix, rising over 5%. Samsung Electronics also participated in the rally, though with a more modest increase of over 5%.

The broader market sentiment was further bolstered by a decline in international oil prices, which fell below pre-conflict levels, and a significant drop in U.S. 10-year Treasury yields. These factors eased concerns about inflation and interest rate hikes, creating a more favorable environment for technology stocks. Analysts noted that the easing of oil and interest rate pressures could broaden investment choices beyond the dominant AI theme.

However, the KOSDAQ index, which comprises smaller companies, ended the day down 2.36%, falling below the 900-point mark it had recently regained. This divergence suggests that while large-cap tech stocks benefited from the positive news, the broader market sentiment remained mixed. Institutional investors were net buyers, injecting approximately 3.3 trillion won into the market, while individual and foreign investors were net sellers, taking profits.

“

Falling oil and interest rates create room for less concentrated investment. The AI boom is a game for a few, but it will help broaden choices.