Japan, South Korea Stocks Open Higher Collectively, Kospi Rises Over 4% Past 7800. Program Trading Briefly Suspended.
Asia-Pacific equities, led by South Korea's KOSPI, surged on May 11, driven by AI-related demand, particularly in semiconductors. Samsung Electronics and SK Hynix hit record highs. Goldman Sachs reiterated its "top conviction" rating for South Korean equities, raising the KOSPI's 12-month target to 9,000 points. The firm forecasts 300% year-on-year corporate profit growth in South Korea for 2026, primarily from the hardware and semiconductor sectors. This rally occurred amidst geopolitical uncertainty regarding U.S.-Iran relations and ongoing negotiations over Iran's nuclear facilities.
TradingKey - On Monday, May 11, Asia-Pacific equity markets continued their AI-driven rally. South Korea's KOSPI index opened 3.7% higher, with intraday gains expanding to as much as 4.2% at one point, breaching the 7,800-point psychological threshold for the first time.
Heavyweight technology stocks surged collectively, with Samsung Electronics rising over 6% intraday and SK Hynix recording a gain of more than 10%, as both share prices hit record highs.
The Nikkei 225 index also opened 0.7% higher, with intraday gains expanding to 1% as of press time.
The Korea Exchange triggered the circuit breaker mechanism for the KOSPI after KOSPI 200 futures surged 5%, suspending program trading for five minutes. Since the start of 2026, KOSPI 200 futures have triggered circuit breakers multiple times due to intense two-way volatility.
Global investment bank Goldman Sachs ( GS) previously maintained its "top conviction" investment rating for South Korean stocks in its latest research report and significantly raised its 12-month target for the KOSPI from 8,000 points to 9,000 points.
The report pointed out that the surge in demand for memory chips driven by the AI wave is the core driver, as the South Korean semiconductor industry, dominated by Samsung Electronics and SK Hynix, has become a critical link in the global AI supply chain. The bank forecasts that, led by the hardware and semiconductor sectors, overall profits for South Korean companies will achieve a 300% year-on-year growth in 2026.
Meanwhile, U.S. President Trump posted on social media on the 10th that the response from Iran was "completely unacceptable," injecting fresh uncertainty into U.S.-Iran relations that had just shown signs of thawing. The core impasse in U.S.-Iran negotiations remains centered on the handling of nuclear facilities; Iran has proposed transferring a portion of its highly enriched uranium stockpile to a third country but refuses to permanently dismantle the facilities in question.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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