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SEOUL, July 31 (Yonhap) -- South Korean stocks skyrocketed by a record 18 percent to reclaim the 6,500-point level Friday, driven by robust semiconductor gains as better-than-expected Microsoft earnings eased concerns over artificial intelligence (AI) spending. The local currency rose sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 1,001.89 points, or 17.91 percent to close at 6,595.45, sharply rebounding from a three-session deep rout caused by a drop in chipmakers and other AI-related stocks.

It marked the largest single-day gain in the index's history, surpassing the previous record increase of 11.95 percent set on Oct. 30, 2008.

The KOSPI had shed more than 17 percent over the previous three sessions, largely due to anxiety over heavy spending on AI infrastructure.

Investor sentiment, however, improved after Microsoft reported better-than-expected second-quarter earnings overnight, beating forecasts for sales and cloud-computing growth.

Trade volume was heavy at 430.2 million shares worth 48.9 trillion won (US$34.2 billion), with gainers outnumbering decliners 772 to 127.

Foreigners and institutions led the upbeat market, purchasing a net 7.22 trillion won and a net 1.15 trillion won, respectively, while individuals dumped a net 8.26 trillion won.

"Semiconductor shares were the main driver of the KOSPI's surge," Kim Seok-hwan, an analyst from Mirae Asset Securities, said. "Earnings of large data center operators, such as Microsoft and Amazon, eased concerns over AI investment and pushed up stocks here."

As part of the government's measures to curb market volatility, meanwhile, the minimum cash deposit required to invest in single-stock leveraged exchange-traded funds (ETFs) increased to 30 million won from the previous 10 million, starting Friday.

Market bellwether Samsung Electronics shot up 26.81 percent to 262,500 won, and SK hynix surged by a daily limit of 29.95 percent to 1.72 million won.

Hanmi Semiconductor, a leading chip equipment manufacturer, soared 27.98 percent to 214,500 won, and SK Square, the parent of SK hynix, escalated by a daily limit of 29.91 percent to 1.04 million won.

Carmakers and shipbuilders were strong as Hyundai Motor jumped 10.54 percent to 388,000 won, and HD Hyundai Heavy Industries mounted 7.37 percent to 481,000 won.

Defense stocks were also in positive territory on renewed military tensions and strong earnings, with industry leader Hanwha Aerospace rising 6.01 percent to 917,000 won and LIG D&A vaulting 9.05 percent to 699,000 won.

The Korean won was quoted at 1,424 won against the U.S. dollar as of 3:30 p.m., up 13.4 won from the close of stock trading the day before.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 7.3 basis points to 3.758 percent, while the return on the benchmark five-year government bonds dropped 6.3 basis points to 4.015 percent.

brk@yna.co.kr

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