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Seoul Stocks Top 6,700 on Tech Rally Ahead of US Earnings

Seoul stocks briefly topped the 6,700-point level on Tuesday, driven by large-cap tech shares ahead of US M7 earnings. The KOSPI has risen 31% in April, the second-largest monthly increase since 1988. Continued hope for the AI boom and Intel's earnings surprise boosted the semiconductor sector. However, analysts warn of potential volatility, with the VKOSPI fear index at a relatively high level above 50 points.

Key Points: Seoul Stocks Hit 6,700 on Tech Rally, AI Boom

  • Seoul stocks briefly top 6,700 points on tech rally
  • KOSPI up 31% in April, second-largest monthly gain since 1988
  • AI boom and Intel earnings boost semiconductor sector
  • Analysts warn of volatility with VKOSPI fear index above 50
2 min read

Seoul stocks briefly top 6,700 on tech rally, ahead of M7 earnings

Seoul stocks briefly top 6,700 driven by tech shares ahead of US M7 earnings. KOSPI surges 31% in April amid AI optimism and eased Middle East tensions.

"This implies that it may not be unusual for the KOSPI to show daily fluctuations of over 3 percent, as it continues to break records. - Han Ji-young"

Seoul, April 28

Seoul stocks briefly topped the 6,700-point level on Tuesday, set to reach another milestone, driven by large-cap tech shares ahead of earnings releases from big US tech companies.

The benchmark Korea Composite Stock Price Index (KOSPI) hit an intraday high of 6,712.73 points in the morning session, reports Yonhap news agency.

The new peak came ahead of first-quarter earnings releases from the Magnificent 7 (M7) companies in the United States, including Apple, Microsoft and Meta.

The benchmark index had risen by some 31 percent in the month of April, the second-largest monthly increase since February 1988.

The market's record-breaking run came after the market experienced a severe rout since the outbreak of war in the Middle East.

Since the crisis started in late February, the KOSPI had once fallen by more than 12 percent in a single trading session, amid fears of the war's impact on South Korea's oil dependent economy.

It was one of the worst performing stock indexes globally, falling by over 19 percent for the month of March.

After surpassing the 5,000-point mark in late January, and topping another milestone of 6,000 points in February, the KOSPI erased most of its gains in March following the outbreak of the U.S.-Iran war.

But continued hope for the artificial intelligence (AI) boom pushed up major tech shares amid eased tension in the Middle East war.

More recently, Intel's earnings surprise provided tailwinds to the local semiconductor sector, reaffirming market confidence in the AI sector, said Lee Kyoung-min, an analyst from Daishin Securities.

The U.S. chipmaker's revenue for its data centre and AI business grew 22 percent on-year in the first quarter, outpacing market expectations.

But Han Ji-young, an analyst at Kiwoom Securities, said the market could experience some volatility ahead, noting that the VKOSPI, a "fear index" that measures market participants' expectations for the volatility of the KOSPI200 over the next 30 days, is at a relatively high level of over 50 points.

"This implies that it may not be unusual for the KOSPI to show daily fluctuations of over 3 percent, as it continues to break records," he said.

- IANS

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Reader Comments

A
Arjun K
Interesting how global markets are tied to tech earnings. Our Indian IT stocks also rallied on Intel's results. But I worry about over-reliance on AI hype—when the bubble bursts, everyone feels it. KOSPI's 12% single-day drop last month is a reminder. Need to diversify portfolios beyond tech.
S
Sneha F
🇮🇳 India has seen similar rollercoasters. KOSPI's recovery from 19% fall is remarkable, but those who panicked in March probably lost money. My advice: SIPs and patience win in volatile times. Glad to see Korean markets showing resilience—their semiconductor sector is world-class.
R
Ravi K
The Korean market's dependence on tech is a double-edged sword. While AI boom is great, Middle East tensions could spike oil prices and hurt their economy. India should learn—we have our own IT boom, but need to strengthen manufacturing too. Good to see KOSPI recovering though.
J
James A
As someone who trades both Nifty and KOSPI, this volatility is crazy. 31% monthly gain is insane. But the analyst warning about daily 3% fluctuations is spot-on. Retail investors should be cautious—these aren't normal times. Stick to blue-chips and don't chase momentum blindly.
T
Tanya I
Great to see Korean stocks recovering! 🇰🇷 But I think Indian investors should watch closely—if AI demand slows, markets could correct sharply. The fear index at 50 is a yellow flag. Still, Intel's earnings give hope. Let's see how M7 results play out next week.

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