Could Seoul's Shares Continue to Soar on Hopes for a S. Korea-US Summit?
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Synopsis
In an exciting turn of events, South Korean stocks hit a new high driven by hopes for a summit with the U.S. and a potential deal with Nvidia. Investors are optimistic about tech collaborations, particularly in AI. What does this mean for the market? Let's explore the latest developments.
Key Takeaways
- South Korean stocks hit a record high.
- Optimism around the Seoul-Washington summit is a key driver.
- Nvidia may sign a crucial AI chip supply deal.
- Tech companies like Samsung and SK Group are poised for growth.
- The local currency strengthened against the U.S. dollar.
Seoul, Oct 29 (NationPress) South Korean stocks reached a new record high on Wednesday fueled by optimism surrounding the upcoming Seoul-Washington summit and a prospective supply agreement with Nvidia. The nation's currency was appreciating against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose by 70.74 points, translating to a 1.76 percent increase, closing at 4,081.15. The trading volume was robust, with 461 million shares exchanged, amounting to 21 trillion won (approximately US$14.6 billion), although decliners outnumbered advancers at 564 to 304, as reported by Yonhap news agency.
Foreign investors sold a net of 227.3 billion won in local shares, while individual investors offloaded a net of 4361.8 billion won. In contrast, institutions acquired a net of 641.1 billion won.
Investors showed strong interest in technology stocks, spurred by reports suggesting that Samsung Electronics and SK Group may deepen their collaboration with Nvidia in the artificial intelligence (AI) domain.
Nvidia's CEO, Jensen Huang, is expected to meet with business leaders during the Asia Pacific Economic Cooperation (APEC) CEO Summit this week.
"The market is keenly focused on reports that Nvidia might finalize an AI chip supply agreement with Samsung Electronics, SK Group, and Hyundai Motor Group," commented Seo Sang-young, an analyst at Mirae Asset & Securities.
On the same day, President Lee Jae Myung met with U.S. President Donald Trump in Gyeongju, with tariff discussions being a significant topic.
Details from the summit remain to be disclosed.
Samsung Electronics, the top tech firm, saw its stock rise by 1.01 percent to 100,500 won, while SK hynix, the second-largest chipmaker, gained 7.1 percent to 558,000 won.
LG Energy Solution increased by 0.78 percent to 514,000 won, and Samsung SDI rose by 6.09 percent to 331,000 won.
The leading search engine Naver climbed 4.74 percent to 265,000 won, and Kakao surged by 6.28 percent to 67,700 won.
The local currency was valued at 1,431.7 won against the dollar at 3:30 p.m., reflecting an increase of 6 won from the previous session.
Bond prices, which inversely correlate with yields, experienced a decline. The yield on three-year Treasuries rose by 4.4 basis points to reach 2.677 percent, while the return on the benchmark five-year government bonds increased by 4.7 basis points to 2.798 percent.
Point of View
Our stance is clear: we stand with the nation in navigating the complex financial landscape. The recent surge in stocks illustrates a pivotal moment for South Korea, showcasing resilience and potential amid global uncertainties. The summit's outcomes may reshape economic dynamics, and we remain committed to delivering unbiased, insightful coverage.
NationPress
29/10/2025
Frequently Asked Questions
What caused the recent surge in South Korean stocks?
The rise in South Korean stocks was primarily driven by optimism surrounding the upcoming Seoul-Washington summit and potential collaborations with Nvidia in the AI sector.
How did the local currency perform?
The local currency appreciated against the U.S. dollar, reaching 1,431.7 won at 3:30 p.m., up 6 won from the previous session.
What are the implications of the Nvidia supply deal?
A potential Nvidia supply deal could significantly enhance the capabilities and competitiveness of South Korean tech firms, particularly in the AI industry.
