KOSPI jumps 2.7% as SK hynix, Samsung lead chip rebound

Key takeaways

• South Korea's KOSPI was up 2.66% at 5,798.98 by 00:05 UTC on Nov. 4, Yahoo Finance data showed, after opening 2.43% higher at 5,786.13.
• Yonhap attributed the opening rally to tech shares, as investors awaited U.S. midterm election results after a 2.63% rise in the Philadelphia Semiconductor Index on Nov. 3.
• SK hynix rose 4.8% and Samsung Electronics 3.6% at the open, TokenPost reported.
• Asian chip stocks are back in focus for Southeast Asian investors after Malaysian semiconductor names fell on Nov. 3. Bank Negara Malaysia decides on its policy rate on Nov. 5.

The KOSPI jumped about 2.7% in early Seoul trade on Wednesday, Nov. 4, reaching 5,798.98 by 00:05 UTC, according to Yahoo Finance. Chipmakers led the gain, recovering most of the 3.59% drop the KOSPI took on Tuesday.

What happened

The benchmark opened at 5,786.13 at 09:00 KST (00:00 UTC), up 137.34 points, or 2.43%. Seoul Economic Daily and K-VIBE reported the same opening figure, the latter carrying a Yonhap report. Five minutes later, at 00:05 UTC, Yahoo Finance showed the index at 5,798.98. That was 150.19 points, or 2.66%, above Tuesday's close of 5,648.79. The index had traded between 5,773.64 and 5,817.90 by then.

Memory-chip makers drove the move. TokenPost reported that SK hynix rose 4.8% and Samsung Electronics 3.6% at the open, both outpacing the index. The tech-heavy KOSDAQ opened 1.61% higher at 715.74, Seoul Economic Daily reported.

Why the KOSPI rose: what we know

Yonhap said Seoul shares opened sharply higher, "driven by gains in tech shares as investors awaited results from the U.S. midterm elections". The agency pointed to Wall Street's Nov. 3 session. The Nasdaq Composite gained 0.83% "on strong chip shares," the S&P 500 rose 0.36%, and the Philadelphia Semiconductor Index climbed 2.63%.

CNBC's closing figures show the Nasdaq Composite finished at 25,372.01 and the S&P 500 at 7,568.92. The Dow Jones Industrial Average fell 197.26 points, or 0.38%, to 51,786.72. During the session, CNBC reported gains of more than 2% for Nvidia and Micron.

After the U.S. close, Advanced Micro Devices reported third-quarter results that beat estimates on revenue and earnings, according to Yahoo Finance. Data center revenue grew 97%. Yahoo Finance said AMD shares rose more than 7% in after-hours trading in a post at 21:29 UTC on Nov. 3. CEO Lisa Su said she expects growth to "accelerate further in the fourth quarter," Yahoo Finance reported. Yonhap's opening report did not mention AMD, so the effect of its results on Seoul trading is not confirmed.

The Nov. 4 move follows a sharp selloff. On Nov. 3, the KOSPI fell 3.59% to 5,648.79 and Taiwan's Taiex also lost 3.59%, The Star reported. That day, Yonhap had linked the opening slide to concerns about heavy AI infrastructure spending ahead of the U.S. midterms. Bullquill covered that session in KOSPI falls 2.67% in early trade as AI worries hit Samsung, SK hynix.

What we don't know yet

• Whether the gains will hold through the Seoul close. All figures here are from the first minutes of trading.
• Foreign and institutional flows for Nov. 4. The opening reports gave no investor-flow figures.
• U.S. midterm results. Yonhap said investors were awaiting them, but no outcome had been reported in the sources reviewed by 00:25 UTC.
• How Southeast Asian markets will react. They had not opened when these data were recorded.

Background: why Seoul's chip swings matter for ASEAN

SK hynix and Samsung Electronics are KOSPI heavyweights and suppliers of memory chips used in AI servers, so the index often moves with AI demand. Bullquill tracked earlier moves in KOSPI rises as SK hynix posts record Q3 profit and KOSPI rises on chip rally after Samsung results.

The same AI trade reaches Southeast Asia through Malaysia's semiconductor and equipment suppliers. On Nov. 3, the FBM KLCI rose 0.14% to 1,621.85 on support from bank stocks, while several tech names fell, The Star reported. Pentamaster lost 20 sen to RM5.27, Kelington Group 33 sen to RM8.17, and UWC 21 sen to RM6.88. The MSCI Asia ex-Japan index fell 1.82% that day, according to The Star.

Malaysia also has a policy decision ahead. Dealers quoted by The Star said Bank Negara Malaysia was "widely expected to keep the overnight policy rate (OPR) unchanged at 2.75%" at its Nov. 5 meeting. Bullquill covered the run-up in Malaysia's record exports and the BNM OPR decision.

What it means

The early KOSPI gain reflects the chip rebound on Wall Street on Nov. 3, according to Yonhap's account. It reverses most of Tuesday's loss but does not settle the debate over AI spending that caused it. Regional chip-related stocks, including Malaysia's tech suppliers, have moved with that debate this week. Regional investors will be watching whether the Seoul gains hold into the close, how U.S. midterm results land, and the Bank Negara Malaysia decision on Nov. 5. Bullquill's ASEAN Close tracks how Southeast Asian benchmarks finish the day.

This article is for information only and is not investment advice.