South Korean Shares Reach Record High Amid Nvidia-Driven Tech Rally
Global Markets: South Korean shares post record-high close as Nvidia hopes lift tech stocks
Image: The Economic Times
South Korean shares achieved a record closing high of 8,801.49 on the KOSPI index, driven by technology stocks amid optimism for AI collaboration with Nvidia. Despite consumer inflation rising to a two-year high, retail investors continued to buy while foreign investors sold off shares.
- 01The KOSPI index closed at a record high of 8,801.49, up 0.15%.
- 02Nvidia's CEO Jensen Huang met with South Korean tech executives to discuss AI partnerships.
- 03Consumer inflation in South Korea rose to a two-year high due to high oil prices from Middle East tensions.
- 04Samsung Electronics and Naver both surged 3.3%, while Hyundai Motor fell 2.8%.
- 05Foreign investors sold shares worth 6.6 trillion won (approximately $4.35 billion) for the 18th consecutive session.
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South Korean financial markets experienced a notable surge, with the benchmark KOSPI index closing at a record high of 8,801.49 on Tuesday, marking a 0.15% increase. The rise was primarily attributed to technology stocks, buoyed by optimism surrounding potential AI collaborations with Nvidia. Nvidia's CEO, Jensen Huang, engaged with leading South Korean tech executives, signaling a busy period for AI advancements. Despite this positive momentum, South Korea's consumer inflation accelerated to a two-year peak, driven by escalating oil prices amid ongoing Middle East conflicts, which may prompt monetary tightening soon. While major players like Samsung Electronics and Naver saw gains of 3.3%, Hyundai Motor's shares declined by 2.8%. The trading session was characterized by volatility, reflecting a clash between retail buying and foreign selling, with foreign investors net selling 6.6 trillion won (about $4.35 billion) worth of shares for the 18th day in a row. The South Korean won traded at 1,518.5 per dollar, slightly weaker than the previous close.
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The record high in the KOSPI index indicates strong performance in the tech sector, which could lead to increased investment and economic growth in South Korea.
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