Kospi Logs Record 606.64-Point Gain, Retakes 7,800 as Samsung Electronics, SK Hynix Soar

Kospi posts its biggest-ever point gain on a wave of positive catalysts

Chip rebound lifts the index back above 7,800

606.64-point surge sets a record

Buy-side sidecars triggered in both Kospi and Kosdaq

Cooling Treasury yields, lower oil prices and Samsung wage deal lift sentiment

Samsung Electronics jumps 8.51%, SK Hynix climbs more than 11%

South Korea’s Kospi jumped 8% on May 21 to reclaim the 7,800 level as U.S. Treasury yields eased, oil prices fell and Samsung Electronics reached a labor agreement with its union.

The benchmark closed at 7,815.59, up 606.64 points, or 8.42%, from the previous session. The gain was the largest in point terms on record, topping the previous high of 490.36 points set on March 5. The Kospi also finished above 7,800 for the first time since May 14.

After opening up 3.8%, the index extended its gains sharply in early trading, triggering buy-side sidecars in both the Kospi and Kosdaq markets. It was the first time since April 8 that buy-side sidecars were activated in both markets on the same day.

The rebound followed a broad rally on Wall Street as the surge in U.S. Treasury yields and international oil prices lost steam. U.S. President Donald Trump said negotiations with Iran were in their final stage.

Technology shares also drew support from Nvidia’s stronger-than-expected earnings. The company posted record revenue for a 12th straight quarter, while adjusted earnings per share came in at $1.87, above Wall Street estimates of $1.76.

Sentiment improved further after Samsung Electronics and its labor union reached a last-minute agreement on wage talks the night before, easing concerns over a strike.

Institutional investors led the advance. They were net buyers of 2.883 trillion won on the Kospi, while foreign investors and retail investors were net sellers of 233 billion won and 2.647 trillion won, respectively.

Most large-cap Kospi stocks rose. Samsung Electronics climbed 8.51% to 299,500 won after the wage deal eased strike concerns. In premarket trading, the stock briefly touched 300,000 won. SK Hynix also surged more than 11%, rising to the 1.9 million won level.

The sharp gains in Samsung Electronics and SK Hynix lifted related stocks including SK Square, Samsung Electronics preferred shares, Samsung Life Insurance and Samsung C&T. LG Electronics hit the daily trading limit on optimism over its robotics business.

The Kosdaq index also rebounded after four straight days of losses. It closed at 1,105.97, up 4.73% from the previous session. In the Kosdaq market, foreign and institutional investors were net buyers of 137 billion won and 139 billion won, respectively, while retail investors were net sellers of 258 billion won.

Among Kosdaq stocks, semiconductor materials, parts and equipment makers and robotics shares were strong, with Wonik IPS up 11.8%, EO Technics rising 18.61% and Rainbow Robotics gaining 16.77%. Machinarocks, which quadrupled from its IPO price on its trading debut, also closed at the daily limit.

The won-dollar exchange rate edged lower. In Seoul trading, the won closed the daytime session at 1,506.1 per dollar, down 0.7 won from the previous session.

Noh Jung-dong, Hankyung.com reporter, dong2@hankyung.com