South Korean Stocks Surge 1.77% on Wall Street Gains, Led by Samsung and SK Hynix

South Korean stocks surged 1.77% in early trading on April 24, 2024, following gains on Wall Street overnight. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 52.73 points to 2,675.75 in the first 15 minutes of trading, with tech and secondary battery stocks leading the rally.

Market heavyweights Samsung Electronics and SK hynix saw their shares jump 4.11% and 5.15% respectively, driving the KOSPI's strong performance. Other major gainers included battery maker LG Energy Solution and refiner SK Innovation.

The surge in South Korean stocks mirrored a broader rise in Asian markets, fueled by the positive sentiment from Wall Street's rally the previous day. Japan's Nikkei 225 index jumped 2.1% while Australia's S&P/ASX 200 index rose 0.3%. The upbeat mood was attributed to strong corporate earnings in the U.S., where the S&P 500 climbed 1.2% and the Nasdaq Composite soared 1.6% on Tuesday.

Why this matters: The strong performance of South Korean stocks, particularly in the tech sector, reflects the global trend of technology shares rebounding after a recent selloff. The rally also highlights the influence of U.S. markets on investor sentiment worldwide, as positive earnings reports from American companies boost confidence in the global economic recovery.

Analysts expect the South Korean market to continue its upward trajectory, driven by earnings-based trading as major companies are scheduled to report their first-quarter results later this week. "The KOSPI had alternated between positive and negative finishes in the past four trading days, but is expected to bounce higher again on Wednesday," said a market analyst quoted in the Korea Times.

In other news, SK hynix announced plans to invest 5.3 trillion won ($3.86 billion) in a new DRAM chip production base in South Korea, with construction set to begin at the end of April 2024. The move aims to expand the company's production capabilities as a supplier to Nvidia and other major tech firms.

The South Korean won also firmed against the U.S. dollar, while bond prices fell, with yields on three-year and five-year government bonds increasing. As the trading day progressed, investors remained focused on the continued strength of the tech sector and the broader market's ability to sustain its gains following the strong start to the week.

Key Takeaways

• South Korean stocks surged 1.77% on April 24, 2024, led by tech and battery stocks.
• Samsung Electronics and SK hynix saw shares jump over 4% and 5%, respectively.
• The rally mirrored gains in Asian markets, fueled by positive U.S. corporate earnings.
• SK hynix announced plans to invest $3.86 billion in a new DRAM chip production base.
• The South Korean won strengthened against the U.S. dollar, and bond yields increased.