South Korean stocks surge 4% at open, led by tech sector gains

South Korea's main stock market index, the Kospi, experienced a significant opening surge of approximately 4% on Thursday, fueled by a robust performance in the technology sector. The positive momentum was particularly pronounced in the semiconductor industry, a key driver of the nation's economy.

The upward trend followed positive news from the global tech giant Alphabet, Google's parent company, which reported a substantial 178% year-on-year increase in profits. This strong financial result reaffirmed the growing demand for artificial intelligence technologies, boosting investor confidence across the tech landscape.

Domestically, major players in the semiconductor field saw considerable gains. Samsung Electronics, a bellwether for the Korean market, rose by 3.55%, while its competitor SK Hynix climbed 4.54%. The technology firm Naver also experienced a significant jump, soaring around 7%.

Beyond semiconductors, other technology-related stocks also showed strength. Defense and aerospace companies contributed to the rally, with LIG Defense & Aerospace increasing by 4.8%, Korea Aerospace by 3.15%, and Hanwha Aerospace by 1.23%. The broader Kosdaq index, which focuses on mid-cap and tech companies, also saw a healthy rise of 3.67%.

This market upswing occurred even as geopolitical tensions persist in the Middle East, indicating that investor focus remained primarily on the promising outlook for the technology sector, especially in areas like AI and semiconductors.