South Korean KOSPI Hits Record High as Automakers Rally on AI Technology Optimism
South Korean shares achieved a record high on Monday, with the KOSPI index closing at 4,904.66 points, up 1.32% and extending gains to a 12th consecutive session. Automakers led the rally, with Hyundai Motor surging 16.22% to an all-time high and Kia gaining 12.18% on artificial intelligence optimism. Foreign investors were net buyers worth ₹552.30 billion won, while technology stocks like LG Electronics and HYBE also posted strong gains.
*this image is generated using AI for illustrative purposes only.
South Korean equities reached a historic milestone on Monday, with the benchmark KOSPI index surging to an unprecedented closing high, driven by strong investor optimism around artificial intelligence technologies and robust performance in the automotive sector.
Record-Breaking KOSPI Performance
The KOSPI index delivered impressive gains, closing the session with substantial momentum across multiple sectors.
| Metric: | Monday's Performance |
|---|---|
| KOSPI Closing Level: | 4,904.66 points |
| Daily Gain: | 63.92 points (+1.32%) |
| Winning Streak: | 12th consecutive session |
| Status: | Record closing high |
Automotive Sector Leads Rally
Automakers emerged as the primary drivers of Monday's market surge, with major players posting exceptional gains on artificial intelligence and robotics optimism.
| Company: | Performance | Significance |
|---|---|---|
| Hyundai Motor: | +16.22% | All-time high, steepest rise since January 2021 |
| Kia Corp: | +12.18% | Strong gains on AI technology hopes |
According to Lee Kyoung-min, an analyst at Daishin Securities, the automotive rally was fueled by investor enthusiasm for 'physical AI' technologies, representing a significant technological advancement opportunity for the sector.
Technology and Entertainment Gains
Beyond automotive, other sectors contributed meaningfully to the market's record performance:
- LG Electronics climbed 8.64%, benefiting from the same 'physical AI' technology optimism affecting automakers
- HYBE surged 8.92% to its highest level since December 2021, following the K-Pop agency's announcement of world tour plans for boy band BTS
Market Breadth and Foreign Investment
The trading session showed mixed breadth despite the overall positive momentum. Of the 929 total traded issues, 398 shares advanced while 489 declined, indicating selective investor focus on specific sectors and themes.
Foreign investors demonstrated strong confidence in South Korean equities, registering net purchases worth 552.30 billion won (equivalent to $374.82 million), providing additional support for the market's upward trajectory.
Currency and Bond Market Movements
The South Korean won showed modest strength against the US dollar, quoted at 1,473.70 per dollar on the onshore settlement platform, representing a 0.01% gain from the previous close of 1,473.90.
In fixed income markets, bond yields moved higher across the curve:
| Bond Maturity: | Yield Movement |
|---|---|
| 3-year Treasury: | Rose 4.10 basis points to 3.116% |
| 10-year Benchmark: | Increased 7.40 basis points to 3.560% |
March futures on three-year treasury bonds declined 0.12 point to 104.97, reflecting the broader risk-on sentiment in equity markets.
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