By Kwanwoo Jun

SK Hynix Inc.'s shares rallied Monday on better investor sentiment after U.S. semiconductor company Micron Technology Inc.'s sharp gains on a bullish market view.

Shares of the South Korean memory-chip maker jumped as much as 8.5% to 121,000 Korean won ($101.91) in morning trade--the sharpest daily percentage gain since February, which helped the benchmark Kospi rise back above its 3000-level.

Analysts said Micron's 7.8% surge on Friday--sparked by U.S. research company Evercore ISI's upbeat outlook on the stock--eased recent market jitters about a chip industry downturn.

The U.S. research firm elevated Micron, together with Lam Research Corp., to its "top picks" list Friday, arguing both could benefit from the "green shoots" in the semiconductor industry.

Some market analysts have said that SK Hynix appears to be entering a down cycle for memory-chip demand from the fourth quarter of 2021 through the second quarter of 2022, likely experiencing a short-term correction to higher DRAM prices recently.

Seoul-based Eugene Investment & Securities in a recent report said it expects DRAM and NAND chip prices to fall 10% and 11%, respectively in 2022, but the downturn may have a limited impact on SK Hynix.

The Kospi was 1.2% higher at 3007.69 in late morning trade, led by large-cap electronics stocks, including SK Hynix which has the second largest market cap in the country's main bourse.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

11-21-21 2336ET