South Korean stocks surged on Friday after the massive SK Hynix IPO helped reinvigorate Asian markets and reaffirmed confidence in the artificial intelligence trade.
The chipmaker raised $26.5 billion in its US listing, a record amount for a foreign firm, by pricing its American depositary shares at $149 each. That price was slightly above the company’s Seoul closing price on Thursday.
Analysts say the deal, which was more than seven times oversubscribed, provided a lift to the tech sector after weeks of selling. Investors have been worried about extended valuations and eye-watering capital spending, but the IPO suggested that demand for AI infrastructure remains strong.
Market reaction across Asia
Seoul’s Kospi jumped more than 5% at one point during the session before paring those gains. SK Hynix itself dipped on Friday, though it had added around 5% the previous day.
South Korean rival Samsung was more than 2% higher, while Tokyo rose more than 1%. SoftBank, the Japanese tech investment giant, gained more than 10%, and Tokyo Electron and Advantest each climbed more than 2%.
Stocks in Hong Kong, Mumbai, Singapore, Sydney, Bangkok, Manila, and Jakarta all joined the advances. London opened slightly higher, but Paris and Frankfurt edged down.
This surge follows a global tech rout that saw SK Hynix’s Seoul-listed shares balloon nearly 700% in the 12 months before June 23. The stock later fell as investors questioned when huge investments would finally reap returns.
Oil prices stabilize
The mood on oil trading floors also appeared less tense than earlier in the week. Investors became less concerned that the recent flare-up between the US and Iran over the Strait of Hormuz would reignite a broader conflict.
Both main crude contracts edged up slightly on Friday after dropping around 2% the day before. Analysts pointed out that more oil is produced outside the Gulf region, which tempers the impact of potential disruptions.
The fall in prices on Thursday “suggests investors continue to view the latest escalation as a temporary setback rather than the start of a prolonged conflict,” City Index’s Fiona Cincotta told AFP.
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The data suggests that markets still expect diplomacy to prevail and that any disruption to global energy supplies will likely be limited.
Market performance
Seoul – Kospi: UP 2.5% at 7,475.94 (close).
Tokyo – Nikkei 225: UP 1.2% at 68,557.73 (close).
Hong Kong – Hang Seng Index: UP 1.0% at 24,266.72.
Shanghai – Composite: DOWN 1.0% at 3,996.16 (close).
London – FTSE 100: UP 0.1% at 10,478.28.
Dollar/yen: DOWN at 161.59 yen from 162.38 yen on Thursday.
West Texas Intermediate: UP 0.2% at $72.24 a barrel.
Brent North Sea Crude: UP 0.1% at $76.41 a barrel.
New York – Dow: UP 0.3% at 52,487.41 (close).
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