Global equities have continued their rally, fueled by optimism surrounding artificial intelligence (AI) and ongoing peace talks with Iran in Pakistan, according to BNY’s Bob Savage [1]. The South Korean KOSPI index reached a new record high, powered by chipmakers Samsung and SK Hynix, which together account for half of the index [1]. Notably, SK Hynix has joined the $1 trillion market capitalization club, alongside Samsung and U.S. peer Micron, driven by strong demand for AI memory chips [1].
Year-to-date, Samsung shares have surged 149%, SK Hynix has gained 215%, and Micron is up 245% [1]. Expectations are high for the semiconductor sector, with forecasts that chip prices will rise 63% in Q2 [1]. The ongoing investment boom in data centers is cited as justifying continued capital inflows into the sector [1].
Despite the broader rally in the Asia-Pacific region, Chinese equities fell, even as January-April industrial profits in China rose 18.2% year-over-year [1]. The iFlow data shows broad-based equity outflows, particularly from Japan, Indonesia, and South Korea, while selective inflows were observed in Norway, New Zealand, Singapore, Thailand, and China [1]. Within developed market sectors, utilities, materials, and energy underperformed, whereas financials and consumer staples attracted buying interest [1].
Market liquidity was affected by the Eid al-Adha holiday, which closed many South Asian markets, and by month-end rebalancing activity [1].
CONCLUSION
The AI-driven chip boom has propelled South Korea's KOSPI to new highs, with SK Hynix and Samsung leading the charge. Despite selective equity outflows and mixed performance across regions and sectors, the semiconductor sector remains a focal point for investors, supported by robust returns and expectations of rising chip prices.