South Korea's benchmark KOSPI opened more than 3% higher as chip stocks rallied on news that U.S. artificial intelligence company Anthropic is pursuing an initial public offering. Samsung Electronics (005930.KS) and SK hynix (000660.KS) both advanced, pulling the index back above the 5,500 level it had lost the previous session. With concerns over AI profitability easing somewhat, foreign investors also turned net buyers in early trading, supporting the gains.
The KOSPI opened at 5,658.65 on the 27th, up 189.18 points, or 3.46%, from the previous session, according to the Korea Exchange. The index had closed at 5,469.47 the day before, down 1.46% and its lowest level since April 6, but rebounded within a single session to retake the 5,700 mark. In early trading, foreign investors bought a net 156.2 billion won, while retail investors and institutions sold a net 118.6 billion won and 39.3 billion won, respectively.
Chip stocks led gains among the largest companies by market value. Samsung Electronics traded at 222,500 won, up 4.46% from the previous session. SK hynix jumped 6.43% to 1.357 million won. SK Square (402340.KS), which holds a stake in SK hynix, rose 9.23%. Samsung Electro-Mechanics (009150.KS) gained 5.99%, Samsung Biologics (207940.KS) 4.32%, Hyundai Motor (005380.KS) 2.26% and KB Financial Group (105560.KS) 1.29%.
The KOSDAQ also opened higher, rising 15.88 points, or 2.18%, to 743.09. Foreign investors bought a net 18.7 billion won, while retail investors and institutions sold a net 7.3 billion won and 9.9 billion won, respectively. Among the index's largest companies, EO Technics (039030.KQ) rose 5.41%, Jusung Engineering (036930.KQ) 5.31%, Wonik IPS (240810.KQ) 5.15% and EcoPro (086520.KQ) 4.02%. Rainbow Robotics (277810.KQ) fell 1.73%.
The rebound in Korean equities followed a rally in U.S. chip stocks overnight. On Wall Street on the 26th, the Nasdaq rose 0.82% and the Standard & Poor's 500 gained 0.70%. The Philadelphia Semiconductor Index climbed 2.82%. Micron rose 3.0%, AMD 2.8% and Nvidia 2.4%, drawing buying interest into Korean chipmakers.
The catalyst was Anthropic's move toward a listing. The company has filed an S-1 registration statement with the U.S. Securities and Exchange Commission and is seeking to list on the Nasdaq. Revenue for the first half of this year reached $16.29 billion, up about 1,300% from the same period a year earlier. Its operating loss narrowed to about $700 million in the first half of this year from $2.14 billion a year earlier. The confirmed revenue growth in AI services has raised expectations that large-scale capital spending can translate into actual profits.
Whether the rebound holds will likely depend on major corporate earnings due this week and the outcome of the U.S. Federal Open Market Committee meeting. SK hynix is scheduled to report third-quarter results on the 28th, followed by Samsung Electronics on the 29th. Earnings from U.S. big tech companies and their outlook for AI capital spending are also key variables. Seo Sang-young, an analyst at Mirae Asset Securities, said expanding AI investment is positive for near-term chip demand but that a slowdown in the pace of investment growth next year could limit growth expectations for supply-chain companies. "We believe that the more a company's current share price reflects continued acceleration in investment and high profit growth, the greater its risk of a valuation reassessment as investment growth slows," Seo said.
