Stocks surge after Nvidia, Samsung tease partnership

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,690.14 points on Wednesday, up 1.28 percent, or 33.97 points, from the previous trading session. [NEWS1]

Shares closed more than 1 percent higher Wednesday after hints of a future collaboration between Nvidia and Samsung Electronics bolstered the Korean chipmaker's price. The local currency remained flat against the U.S. dollar.

Samsung Electronics spiked 5.63 percent to close at 76,900 won, while SK hynix lost 2.31 percent to 156,500 won.

“The advance by Samsung Electronics was the largest reason for the increase in Kospi,” said Kim Dae-joon, a researcher at Korea Investment & Securities. “The reason Samsung Electronics rose while SK hynix fell is because of Nvidia.”

The Kospi surged 33.97 points, or 1.28 percent, to close at 2,690.14.

Trade volume was heavy at 710 million shares worth 12.6 trillion won ($9.3 billion), with gainers outnumbering losers 481 to 380.

Foreign investors became net buyers, scooping up 840.4 billion won worth of local shares, while institutions purchased a net of 586.6 billion won. Retail investors dumped a net of 1.4 trillion won.

Wednesday's market advance was largely attributed to a sharp gain in market kingpin Samsung Electronics after U.S. tech firm Nvidia hinted at potential cooperation with the world's largest supplier of memory chips.

The rally marked the market's recovery from the previous day's 1 percent fall as investors took to the sidelines ahead of the U.S. Federal Open Market Committee's two-day rate setting meeting, which is set to end Wednesday (U.S. Eastern time).

LG Energy Solution climbed 1.12 percent to 407,500 won, with Samsung SDI surged 0.44 percent to 453,000 won.

Posco Holdings fell 1.16 percent to 426,500 won.

Automakers closed mixed with Hyundai Motor advancing 1.47 percent to 241,000 won while Kia fell 2.69 percent to 115,700 won.

KB Financial Group rose 1.79 percent to 73,800 won, and Shinhan Financial Group climbed 1.99 percent to 48,800 won.

The local currency closed at 1,339.80 won against the dollar, unchanged from the previous session's close.

The Kosdaq lost 0.46 points, or 0.05 percent, to close at 891.45.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.4 basis points to 3.383 percent, while the return on the benchmark 10-year government bonds shed 3.6 basis points to 4.294 percent.

BY KIM JI-YE, YONHAP [kim.jiye@joongang.co.kr]