-- South Korean shares closed sharply higher on Wednesday, with the primary index shooting up to close at a record high.
The rally was led by strong gains in semiconductor stocks and investor optimism for a possible peace agreement between the US and Iran after US President Donald Trump halted the military operation Project Freedom in the Strait of Hormuz.
The Korea Composite Stock Price Index or Kospi increased 447.57 points, or 6.5%, to end at 7,384.56. The Kosdaq fell by 3.57 points, or 0.3%, to close at 1,210.17.
Chipmakers Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) added over 14% and nearly 11%, respectively, at market close.
The Korea Exchange activated a five-minute buy-side sidecar on the country's primary stock market on Wednesday morning as investors rushed to purchase securities on hopes that the U.S.-Iran conflict may end in the near future.
The Korea Exchange announced the order at 9:06 am after the KOSPI200 Futures added 66.05 points, or 6.28%, to trade at 1,116.55.
In economic news, South Korea's inflation climbed 2.6% year on year in April, accelerating from a 2.2% rise in March amid the ongoing conflict in the Middle East, data from the country's Ministry of Data and Statistics showed on Wednesday.
The headline print was in accordance with the median estimate of 2.6% in a Bloomberg survey.
The increase was driven by higher costs across all categories, with transport gaining the highest at 9.7%.
Meanwhile, core inflation, which measures prices of goods excluding food and energy, remained steady at 2.2% in April.
In corporate news, Samsung Electronics hit a market valuation of $1 trillion on Wednesday, supported by the strong demand for AI chips, Bloomberg News reported on the same day.
The South Korean chipmaker became the second Asian firm after Taiwan Semiconductor Manufacturing (TPE:2330) to hit the $1 trillion mark.
Overseas investors appear to be driving the recent rally in the stock, supported by a deal between Interactive Brokers and Samsung Securities (KRX:016360) that allows U.S. investors to directly buy South Korean stocks.
The firm's semiconductor wing had posted a record profit in the first quarter, surpassing expectations by a wide margin on strong AI data center demand, with analysts expecting the momentum to continue in the quarters ahead as contract prices keep moving higher amid a scarce supply.
In other news, LG Electronics (KRX:066570) secured the top 1% rating in credit rating agency S&P Global's Corporate Sustainability Assessment for the third straight year, the electronics products maker said in a Wednesday release.
The company secured the highest score of 77 points in the Home Appliances & Leisure Goods industry group, which covers leisure equipment and products and consumer electronics.
Shares of LG Electronics jumped over 8% at market close.