Kospi tops 7,100 on semiconductor rally; foreigners buy for 4th straight session

The Kospi extended its winning streak to four consecutive sessions on Wednesday, lifted by overnight gains in US technology stocks that spilled over into domestic semiconductor shares.

As of 9:14 a.m., the benchmark index stood at 7,124.77, up 106.86 points, or 1.52 percent, from Tuesday. The index opened at 7,153.99, a gain of 136.08 points, or 1.94 percent, from the previous close, and has held onto gains of more than 1 percent since the open.

On the main KOSPI market, foreign investors were net buyers of 174.1 billion won ($128 million), extending their net purchasing streak to four straight sessions. Institutional investors were also on the buying side, posting net purchases of 149 billion won.

Retail investors, by contrast, were net sellers for the fourth consecutive session, offloading a net 375.3 billion won worth of shares. Analysts attributed the selling to profit-taking ahead of the chuseok holiday, which begins Thursday.

Foreign investors were also net buyers in the KOSPI 200 futures market, posting net purchases of 121.2 billion won.

Wall Street closed mixed overnight as investors monitored developments between the United States and Iran on the sidelines of the UN General Assembly.

The tech-heavy Nasdaq Composite rose 0.45 percent to a new all-time high, while the Dow Jones Industrial Average fell 0.36 percent and the S&P 500 ended little changed.

Delegations from the US and Iran met at UN headquarters in New York on Tuesday (local time), on the sidelines of the General Assembly. President Donald Trump told reporters the talks had been "a very good meeting," adding that they had been "very productive" and that further talks were scheduled "in the very near future."

Oil prices fell after reports emerged that Iran had proposed reopening the Strait of Hormuz within seven days in exchange for a reduction in US military pressure.

Brent crude for November delivery and West Texas Intermediate for October delivery fell 1.1 percent and 1.2 percent, respectively, both settling below $100 per barrel.

AI and semiconductor-related stocks led the gains in New York. Nvidia rose 0.66 percent and Micron Technology surged 5.00 percent, while the Philadelphia Semiconductor Index climbed 2.06 percent.

The rally carried over to Seoul, where Samsung Electronics and SK hynix — the two dominant domestic chipmakers — were driving index gains.

Samsung Electronics was trading up 2.53 percent at 283,500 won from Tuesday, after opening with a gain of 2.89 percent and briefly touching 285,000 won, a rise of 3.07 percent, in early trade.

SK hynix rose 1.79 percent to 1.87 million won. The stock also opened with a gain of more than 3 percent and briefly climbed to 1.9 million won, up 3.26 percent.

Among other large-cap stocks, SK Square gained 4.15 percent, Samsung Electro-Mechanics rose 2.22 percent, LG Energy Solution added 1.71 percent, Hyundai Motor edged up 0.69 percent and KB Financial Group inched up 0.06 percent.

On the downside, Samsung Biologics fell 0.65 percent, Doosan Enerbility dropped 1.39 percent, Hanwha Aerospace slipped 0.19 percent, Shinhan Financial Group declined 0.62 percent and HD Hyundai Heavy Industries lost 1.43 percent.

By sector, electrical and electronics posted the biggest gain at 2.29 percent, followed by medical and precision equipment at 2.04 percent and manufacturing at 1.87 percent. Construction fell 2.99 percent, machinery and equipment dropped 0.79 percent, and food, beverages and tobacco slipped 0.69 percent despite the broader market advance.

The Kosdaq was up 10.45 points, or 1.25 percent, at 844.83 at the same time. The index opened at 841.73, a gain of 7.35 points, or 0.88 percent, from Tuesday, and has maintained gains of around 1 percent.

On the Kosdaq market, retail investors were net buyers of 28.7 billion won. Foreign investors and institutions were net sellers of 500 million won and 18.6 billion won, respectively, capping further upside.

Most large-cap Kosdaq stocks were also in positive territory, with Alteogen up 2.20 percent, Ecopro gaining 1.62 percent and Ecopro BM rising 2.30 percent. Leeno Industrial fell 1.73 percent and Taihan Fiberoptics dropped 1.35 percent.