South Korean stocks surged to a fresh record high on Monday, driven by strong investor appetite for technology and artificial intelligence-related shares, with the benchmark Korea Composite Stock Price Index (KOSPI) climbing as much as 1.42 percent to 8,596.18 in early trading. The index had already closed at a record 8,476.15 on Friday, and Monday's opening extended that momentum further. The KOSPI is South Korea's primary stock market index, tracking the country's largest listed companies.
Technology heavyweights led the gains. Samsung Electronics, the country's largest company by market capitalisation, rose 3.47 percent, while top carmaker Hyundai Motor jumped 6.22 percent and its parts affiliate Hyundai Mobis gained 5.34 percent. LG Electronics was a standout performer, skyrocketing nearly 30 percent, while internet portal operator Naver surged almost 9 percent. Robot and AI-related stocks broadly traded higher amid expectations that the upcoming visit to South Korea by Nvidia CEO Jensen Huang could generate significant partnership opportunities for domestic firms.
The rally in Seoul was part of a wider AI-driven advance across Asian markets. In Tokyo, Japan's Nikkei share average topped 67,000 for the first time, climbing 1.1 percent. The day's standout mover was SoftBank Group, the Japanese technology investment conglomerate, which surged more than 10 percent after pledging some 75 billion euros over five years to build AI infrastructure in France. The jump pushed SoftBank's market capitalisation to around 47.2 trillion yen, overtaking Toyota Motor to become Japan's most valuable company. A Nomura Securities strategist noted that buying interest was spreading to AI-related stocks that had previously lagged, though she cautioned that concerns about overvaluation remain, particularly given ongoing uncertainty in the Middle East.
That geopolitical uncertainty provided some headwind. Over the weekend, Washington and Tehran exchanged messages seeking revisions to a draft agreement aimed at extending a ceasefire and reopening the Strait of Hormuz — the critical waterway through which a significant share of global oil exports pass — though meaningful progress remained unclear. Oil prices rebounded from a six-week low as a result, with Brent crude climbing toward $93 a barrel.
The tech-driven rally highlights how AI investment expectations are increasingly capable of lifting markets even when broader macro conditions remain unsettled. While the KOSPI and the Nikkei both hit record highs, the gains were notably concentrated: in Tokyo, only 73 of the Nikkei's 225 components rose, with auto stocks among the worst performers. The divergence between AI beneficiaries and the rest of the market underscores how selective — and potentially fragile — the current optimism may be.