KOSPI Tops 7,000 as AI, Chip Gains Offset Yen and Oil

By late morning in Seoul the KOSPI climbed 1.67% to 7,070.94, reclaiming the 7,000 level. Samsung Electronics advanced 1.48% and SK Hynix jumped 4.85% as the Philadelphia Semiconductor Index gained 1.3% overnight while major U.S. benchmarks slipped. Hyundai Motor increased 0.52%. Hanwha Aerospace rose 2.24% and Hanwha Ocean added 2.32% after being named preferred bidder for a Royal Thai Navy frigate project valued at about $500 million.

In Tokyo the Nikkei 225 traded near 65,495.23 by the midday break, up about 0.35% after earlier swings. Technology stocks led gains, including SoftBank Group, Lasertec and Kokusai Electric. Cable makers climbed after Corning agreed a multibillion-dollar supply deal with Verizon for high-density optical fiber and connectivity products for 2027–2032; Fujikura, Furukawa Electric and Sumitomo Electric were among the beneficiaries. The yen strengthened to about 153.3 per dollar, its strongest level since February, reducing the value of overseas earnings for exporters.

Other regional markets were mixed. Taiwan’s TAIEX rose 0.6% and China’s CSI 300 added 0.2%, while Hong Kong’s Hang Seng fell 0.6% and Australia’s benchmark slipped roughly 0.3%.

Brent crude moved toward $100 a barrel after renewed attacks on Saudi energy infrastructure and fresh clashes involving Iranian and U.S. forces; U.S. West Texas Intermediate traded around $94.50. Higher crude increases costs for import-dependent economies in East Asia and can affect inflation and corporate margins.

Mirae Asset Securities research head Park Yeon-joo expects the KOSPI’s ability to remain above 7,000 will depend on continued AI-related investment and earnings growth at major chipmakers. Park also views Korean equities as undervalued relative to their earnings power.

LPL Financial strategist Adam Turnquist calculated that markets now imply roughly a 98% probability of a Bank of Japan rate increase this month, citing firmer GDP, inflation and wage data. A stronger yen following a policy move would lower the yen value of foreign sales and add pressure on exporters.

Market participants described trading around the 7,000 mark as volatile as investors balanced stronger technology earnings and AI demand against higher energy prices and currency moves. Immediate market direction will reflect whether chipmakers can sustain profit growth and how oil and currency trends affect inflation and company forecasts.