Southern KOSPI (03121) climbed more than 3% during trading before settling at a 2.26% gain, reaching HKD 6.565 with turnover of HKD 13.4745 million. The rally comes as South Korea's export figures for the first 20 days of August surged over 50% year-on-year, marking a record high for the period, largely driven by a substantial increase in semiconductor shipments.

Semiconductor exports during the same period skyrocketed 198.8% compared to last year, pushing their share of total exports to a record-breaking 47.2%. Both metrics set new highs for the corresponding period, reflecting robust global demand for memory chips and related products.

On Thursday, the Bank of Korea raised its benchmark interest rate by 25 basis points to 3%, marking the second consecutive hike. In a notable move, the central bank also sharply upgraded its 2026 GDP growth forecast to 3.3%, a significant jump from the 2.6% projected in May, signaling growing confidence in the economy's recovery trajectory.

Adding to the positive momentum, Nvidia's strong revenue outlook has lifted chip stocks globally, helping the Kospi index advance for a third consecutive trading day. The tech-heavy index continues to benefit from the AI-driven semiconductor boom.

Notably, media reports indicate that Singapore's sovereign wealth fund Temasek is considering investing in South Korea's two major memory chip giants—Samsung Electronics and SK Hynix. If the investment materializes, it would mark Temasek's first foray into the Korean stock market, potentially adding further upside to the sector.