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South Korean Shares Rally on AI Optimism

The benchmark KOSPI climbed nearly 3% to around 6,885 on Monday, rallying for a third straight session, as gains in semiconductor stocks lifted the index. The PHLX semiconductor index rose 3.38% on expectations that OpenAI’s new GPT-6 Astra model will boost demand for memory chips. Samsung Electronics and SK hynix advanced nearly 4% and more than 6%, respectively, while SK Square rose 5.4%, Hyundai Motor gained 1.9%, Doosan Enerbility climbed 5.1%, Shinhan Financial Group added 2.3%, and LG Electronics surged 9.4%. At the same time, South Korea’s exports reached a record $709.4 billion so far this year, already surpassing the 2025 annual record, with semiconductor exports jumping 169.6% in January-August, reinforcing expectations for solid corporate earnings and economic growth. Meanwhile, heightened US-Iran tensions remained a risk, while stronger-than-expected US jobs data increased expectations for a September Fed rate hike and pushed Treasury yields higher.

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