South Korean shares rise as chipmakers jump

Shares in South Korea moved higher on Wednesday, marking a third straight gain, as chip producers rallied on optimism about artificial intelligence. Business Recorder, citing Reuters, reported that the benchmark KOSPI index was up 3.46%, at 6,565.26 by 0155 GMT, its highest level since August 5.

Wall Street ended lower on Tuesday, with Amazon and Alphabet slipping as investors grew less optimistic about a possible deal to restore stability in the Middle East. The Philadelphia Semiconductor Index nonetheless gained 0.9%. Samsung Electronics jumped 6.16% and SK Hynix added 3.86%, while battery maker LG Energy Solution rose 2.54%.

Hyundai Motor and Kia Corp gained 1.99% and 1.86%, while steelmaker POSCO Holdings edged up 0.15% and Samsung BioLogics slipped 0.81%. Of 910 issues traded, 468 advanced and 402 declined, and foreign investors made net purchases worth 899.6 billion won, or $635.65 million. Analyst Han Ji-young of Kiwoom Securities said demand for semiconductor and domestic AI-related stocks is expected to improve, citing strong AI infrastructure demand shown by Coreweave and Supermicro.