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SEOUL, May 6 (Yonhap) -- South Korea's main KOSPI index broke above 7,000 for the first time on Wednesday, as major technology stocks got a boost from expectations that demand for high-end chips would surge as global tech giants race to build ever larger artificial intelligence (AI) data centers.
Investors were also cheered by signs of optimism that the ongoing war in the Middle East will continue to be contained and not spill over into a broader regional conflict.
The benchmark KOSPI opened at 7,093.01, up 2.25 percent from the previous session, marking the first time ever that the main index has surpassed the 7,000-point milestone. As of 10:27 a.m., the KOSPI soared 5.12 percent to 7,292.19.
Program trading of stocks listed on the KOSPI was halted for five minutes as the index showed signs of overheating, according to the nation's bourse operator.
Amid the two-month-old war in the Middle East, U.S. President Donald Trump hinted earlier in the day that he may halt a U.S.-led effort to help stuck ships exit the Strait of Hormuz so a possible deal with Iran to end the conflict could be finalized.
Employees take part in a ceremony at the dealing room of Hana Bank in Seoul on May 6, 2026, to celebrate the benchmark Korea Composite Stock Price Index having risen over the 7,000-point mark for the first time in early trading. South Korean stocks rose, driven by U.S. President Donald Trump's announcement to pause operations to guide vessels out of the Strait of Hormuz as part of efforts to finalize a deal with Iran. (Yonhap)
With the KOSPI surpassing 7,000, its market capitalization also surged past 6,000 trillion won (US$4,116 billion) for the first time, according to the bourse operator.
Buoyed by strong gains in stocks related to AI, the KOSPI has been on a record-breaking run for weeks.
It reached 6,600 last Wednesday and shot up more than 5 percent to close over 6,900 on Monday.
Heavy bets on technology stocks, along with signs of truce optimism in the Middle East, were likely to take the KOSPI to a new record high, analysts said, with the main index tracking rallies in the U.S. stock market overnight.
Lee Kyung-min, an analyst at Daishin Securities, said the KOSPI has even more room to gain.
"The KOSPI has continued to rise entirely based on performance," Lee said in a report.
Compared with beaten-down stock markets during the coronavirus pandemic, the so-called price-to-earnings ratio is still low this time, Lee said.
Helped by the AI boom, major technology stocks in Seoul remain remarkably healthy.
Samsung Electronics soared 12.04 percent, and its chipmaking rival SK hynix jumped 9.88 percent in early morning trading.
Hyundai Motor gained 2.78 percent, and Kia Motors rose 1.36 percent.
Leading banking groups KB Financial Group and Shinhan Financial Group increased 2.53 and 1.43 percent, respectively.
Employees take part in a ceremony at the dealing room of Hana Bank in Seoul on May 6, 2026, to celebrate the benchmark Korea Composite Stock Price Index having risen over the 7,000-point mark for the first time in early trading. South Korean stocks rose, driven by U.S. President Donald Trump's announcement to pause operations to guide vessels out of the Strait of Hormuz as part of efforts to finalize a deal with Iran. (Yonhap)
Reflecting the overall bullish sentiment, some analysts have raised their target price for the KOSPI index.
Han Ji-young, an analyst at Kiwoom Securities, said, "The outlook for the KOSPI has been increased by the first quarter's performance."
Han said the KOSPI's performance appears to be supported by leading industries such as semiconductors.
In one of the most optimistic scenarios, Hana Securities expected the KOSPI to rise above 8,000 this year, based on an assumption that the U.S. Federal Reserve may cut its key rate one or two times this year.
kdh@yna.co.kr
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