According to latest reports, South Korea's KOSPI index surged 7% on Thursday, snapping a multi-day losing streak as Asia-Pacific markets tracked Wall Street's gains. The benchmark had fallen 9.35% after hitting an all-time high above 8,000 last Friday. The rally was driven by multiple positive developments, including President Trump's announcement that Washington is now in the "final stages" of negotiations with Tehran regarding Iran talks, which had previously rattled investors. As per multiple reports, the KOSPI has tripled in less than 18 months, with the pace beating the Nasdaq Composite's dotcom-era climb by roughly six months. The recovery was further supported by Nvidia's latest earnings showing revenue climbing 85% year-on-year to $81.62 billion.
The union said the planned 18-day strike by nearly 48,000 members would be suspended while the tentative agreement is put to a vote between May 22 and 27. The deal represents a significant development as it potentially averts a strike that had threatened to hit the economy and undermine global chip supply chains. This suspension of the planned walkout provides immediate relief to Samsung's operations and the broader semiconductor industry supply chain. Details of the agreement have drawn attention, including bonuses for some staff of around $416,000, mostly paid in stock, as reported by Gregor Stuart Hunter. The agreement was reached at the 11th hour late Wednesday, demonstrating the urgency of resolving the labor dispute.
Samsung shares climbed more than 6% following the labor agreement, while memory rival SK Hynix jumped 11% as the bonus package that triggered the pay dispute at Samsung was resolved. The semiconductor sector benefited from the broader market recovery, with Nvidia's strong earnings performance providing additional momentum. According to the latest data, the KOSPI rally is fueled largely by the country's two heaviest-weighted listed companies, Samsung Electronics and SK Hynix, which now make up a record 42% of the benchmark. Samsung has risen roughly 130% this year while SK Hynix has climbed nearly 170%, with surging memory-chip demand from AI hyperscalers anchoring the run. Notably, Goldman Sachs, Citigroup, and JPMorgan have raised their year-end KOSPI targets in recent weeks.
