South Korean stocks hit record 9,000 points on semiconductor strength

The South Korean stock market reached an unprecedented milestone today, with the KOSPI index closing above 9,000 points for the first time in its history. This surge was primarily propelled by robust performance and optimistic outlooks within the semiconductor sector, overshadowing concerns about potential interest rate hikes by the U.S. Federal Reserve.

Foreign investors played a crucial role, injecting approximately 1.28 trillion won into the market, counteracting significant selling by individual and institutional investors. This inflow boosted major technology stocks, with Samsung Electronics and SK Hynix leading the charge. Samsung Electronics' market capitalization climbed to rank it among the top 10 globally, surpassing companies like Meta and Tesla.

While the U.S. Federal Reserve signaled a potential rate increase to combat inflation, the market's reaction was muted. Kevin Wash, the new Fed chair, emphasized the commitment to price stability, but the market seemed to have priced in these expectations. This contrasts with the downturn seen in U.S. stock markets following the Fed's announcement.

The rally in the semiconductor industry was further fueled by positive developments, including SK Hynix supplying samples of its HBM4E memory to clients and reports of Apple CEO Tim Cook highlighting memory supply shortages. The anticipated price increases and potential for long-term supply contracts are seen as stabilizing factors for the memory chip industry, benefiting key players like Samsung, SK Hynix, and Micron.