South Korean stocks posted their biggest gain in 28 years. Kospi soared 31% in April

South Korea's benchmark stock market index Kospi added almost 31% in April, showing the strongest monthly growth since January 1998. In trading on April 30, the index fell by 1.38% under the pressure of a sharp jump in oil prices amid fears of renewed U.S. military action against Iran and continuing uncertainty after the decision of the Federal Reserve to keep rates unchanged. Since the beginning of the year, the Kospi is up 56%.

The April result largely provided a rally in the shares of technology companies, writes CNBC. The drivers were the securities of leading semiconductor manufacturers SK Hynix and Samsung Electronics - their quotations soared in April by 60% and 35% respectively due to optimism around the boom in artificial intelligence.

HSBC last week upgraded South Korea's rating from "below market" equivalent to a recommendation to sell securities of the country's companies, to "neutral". The bank's analysts noted that recent foreign capital outflows have helped reduce congested market positions and mitigated downside risks amid geopolitical volatility. In addition to the largest chip makers, HSBC pointed out that sectors such as energy storage systems, shipbuilding, defense and nuclear power - which are supporting the market rally - are also supporting growth.

This article was AI-translated and verified by a human editor