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Seoul: Stocks reach 6-week peak as tech shares rally; Samsung hits record
[SEOUL] South Korean shares rallied to a more than a six-week high early on Monday as strong gains for Wall Street's tech sector boosted investors' appetite for Korean counterparts while concerns about North Korea risks eased.
As of 0230 GMT, the Korea Composite Stock Price Index (Kospi) was up 1.1 per cent at 2,411.78 points, its highest intraday level since Aug 3.
The South Korean won edged up, standing at 1,127.9 against the US dollar, up 0.3 per cent compared to Friday's close of 1,131.7.
"Local shares have been pressured throughout August and September due to geopolitical risks and now that the risks somewhat calmed, the Kospi is showing a sharp rebound," said Rhoo Yong Seok, a stock analyst at KB Securities.
Mr Rhoo said that a brighter outlook for tech sector quarterly earnings sector was also driving the overall stock index up.
"Semiconductors are expected to remain strong for the next couple of quarters as DRAM prices will continue to rise."
Tech giant Samsung Electronics rose 2.8 per cent to a record high at 2,590,000 won while chipmaker SK Hynix gained more than three per cent.
The sub-index for electric and electronics shares touched a record intraday level after gaining 2.3 per cent.
Shares of securities firms jumped 3.5 per cent, cheered by large gains in Seoul bourse.
Foreign investors were poised to be net buyers, purchasing 58.8 billion Korean won (S$69.91 million) of Kospi shares near mid-session, buttressing the index.
September futures on three-year treasury bonds lost 0.01 point to 109.39.