Micron's Profit Boosts Seoul Stock Exchange, KOSPI Soars Nearly 5 Percent

JAKARTA - South Korea's stock market jumped in midday trading on Thursday. The semiconductor stock rally came after Micron Technology's financial report eased market concerns about the prospects for artificial intelligence or AI growth.

Launching a Yonhap report, Thursday, June 25, the Korea Composite Stock Price Index (KOSPI) reference index opened up 2.74 percent, then extended the strengthening to 414.55 points or 4.89 percent to 8,885.57 at 11.20 local time.

Last night, Wall Street closed with mixed results as investors were still concerned about the valuation of AI-related stocks, which were considered too high. Valuation is a measure of the cost or cheapness of the stock price compared to the company's performance and prospects.

But after the US trading closed, Micron Technology, the world's third largest memory chipmaker, released quarterly financial results that exceeded market expectations.

The news immediately lifted the leading stocks in Seoul. Samsung Electronics rose 4.77 percent, while SK hynix soared 9.61 percent.

Hanmi Semiconductor, a chip equipment maker, gained 2.22 percent. LG Electronics rose 0.24 percent.

The financial sector also strengthened. KB Financial Group rose 1.91 percent, while Samsung Life Insurance jumped 6.47 percent.

In the foreign exchange market, the Korean won was traded at 1,547.25 won per US dollar at 11.20 local time. The South Korean currency weakened 5.25 won from the previous session.

The KOSPI's strengthening shows Micron's report has revived investor interest in South Korean chip and technology stocks after the market had been worried that AI stock prices were too expensive.