KOSPI Surges Past 7,100 as Samsung and SK Hynix Lead Tech Charge

The KOSPI index in South Korea surged past 7,100 on Tuesday, driven by gains in tech-heavy stocks like Samsung Electronics and SK Hynix. This rally comes after Monday's sharp jump of over 4% in the previous session.

Samsung Electronics rose 2.59%, while SK Hynix gained 3.98%. Foreign and institutional investors were net buyers, purchasing more than 610 billion won of shares by late morning, offsetting heavy selling from retail investors.

The rally reflects renewed confidence in the memory-chip cycle, with KB Securities expecting exceptionally tight memory supply next year and estimates inventories at Samsung and SK Hynix have fallen below 10 days. Nomura Securities also sees these two stocks as deeply undervalued relative to the expected expansion in global semiconductor capacity.

In contrast, Japan's Nikkei 225 struggled for direction on Tuesday, weighed down by a rapidly strengthening yen that has revived expectations for a Bank of Japan rate increase.