South Korean shares end nearly 2% higher on record chip exports

** South Korean shares recouped early losses to end nearly 2 per cent higher on Thursday, led by gains in chipmakers after domestic trade data smashed forecasts to hit a fresh record.

** The benchmark KOSPI closed 133.31 points, or 1.95 per cent higher, at 6,971.35, after falling as much as 1.1 per cent earlier in the session.

** The KOSPI snapped three consecutive sessions of decline to post its biggest daily percentage rise since September 18.

** "The domestic market was led by strength in the chip sector after export data. However, we still need to see if growth rates will continue to improve," said Seo Sang-young, an analyst at Mirae Asset Securities.

** South Korea's exports jumped 83.5 per cent in September from a year earlier to a record $120.9 billion, beating the median market expectation for a 62.0 per cent increase, as semiconductor shipments more than tripled on global AI spending.

** South Korea's factory activity grew in September at the strongest pace in four months, as export demand hit the fastest pace in 15-1/2 years led by the chip and auto sectors, a survey showed.

** Upbeat domestic data came after US chipmaker Micron Technology forecast quarterly revenue above estimates on Wednesday and said customers had increased commitments under its long-term supply agreements to $32 billion, signalling unabated demand for AI memory chips.

** South Korea's finance minister said authorities would closely monitor financial markets and take pre-emptive action if needed.

** South Korean chipmaker Samsung Electronics rose 2.79 per cent and peer SK Hynix gained 3.21 per cent, leading the benchmark index higher.

** Of the total 916 traded issues, 542 shares advanced, while 332 declined.

** Foreigners were net sellers of shares worth 547.3 billion won ($402.93 million).

** The won was quoted at 1,358.4 per dollar on the onshore settlement platform, 0.20 per cent lower than its previous close at 1,355.7.

** The most liquid three-year Korean treasury bond yield fell by 0.2 basis points to 4.009 per cent, while the benchmark 10-year yield rose by 2.8 basis points to 4.429 per cent.