South Korean chip stocks rally, tracking US AI gains; Temasek report adds support
BUZZ-South Korean chip stocks rally, tracking US AI gains; Temasek report adds support ** Shares of South Korean chipmakers SK Hynix 000660.KS and Samsung Electronics 005930.KS rallied on Thursday, tracking overnight gains in U.S. AI and semiconductor stocks, while a report that Singapore state investor Temasek plans to invest in the memory chip makers also buoyed sentiment.
** SK Hynix shares rose as much as 8.2% in morning trade, while Samsung Electronics gained as much as 5.7%. The benchmark KOSPI .KS11 was up 4.5% as of 0017 GMT.
** Shares of chip equipment and component makers Hanmi Semiconductor 042700.KS, Wonik IPS 240810.KQ and Isu Petasys 007660.KS were trading up as much as 5.3%, 7.6%, and 9.1%, respectively.
** The gains followed a rally in U.S. technology stocks on Wednesday, with the S&P 500 and Nasdaq closing higher as upbeat results and forecasts from AI infrastructure companies reinforced optimism over robust spending on artificial intelligence. Mild U.S. inflation data also supported investor sentiment.
** Analysts said positive sentiment toward AI and memory stocks in the U.S. spilled over into the South Korean market, with a local media report on Wednesday about Temasek's investment plans providing an additional boost to the country's two biggest chipmakers.
** The report said Temasek had contacted the South Korean government as it considered the timing of investments in Samsung and SK Hynix.
** Temasek, however, told Reuters that it had not sought the government's advice on the timing of investments in the two chipmakers, adding that it had first invested in both companies more than two years ago.
** Asked whether it was considering further investments in Samsung Electronics and SK Hynix, Temasek said: “We do not comment on individual investments and hence will not be able to provide further comments.”
** The Singapore state investor said that it had previously invested in other South Korean companies, including Celltrion 068270.KS, Hyundai Motor 005380.KS and POSCO 005490.KS.
(Reporting by Heekyong Yang
Editing by Ed Davies)
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