South Korean Shares Slip on AI Valuation Fears

The benchmark KOSPI slumped 3.87% to around 5,268 on Thursday, reversing the previous session’s gains as renewed geopolitical concerns rattled investors. Sentiment was dampened after Donald Trump signaled in a public address that the US is “nearing completion” of its military objectives in the Middle East while vowing to “finish the job” in the near term. Trump cautioned that over the next two to three weeks, the US could hit Iranian targets “extremely hard” and potentially “bring them back to the Stone Age,” threatening energy facilities if no deal is reached. Economic data added to market caution, with South Korea’s consumer prices rose 2.2% in March, above the 2% target, led by a 9.9% jump in petroleum, the sharpest since October 2022. Notable losers were Samsung Electronics (-5.27%), SK Hynix (-5.26%), Hyundai Motor (-4.41%), and Doosan Enerbility (-4.82%).

The benchmark KOSPI rose 0.92% to around 5,529 on Thursday, extending gains for a second consecutive session as easing geopolitical tensions boosted investor confidence. Optimism followed Donald Trump’s comments suggesting the monthlong Middle East conflict could be nearing an end, raising hopes of reduced global risk. Trump indicated the US could withdraw from Iran relatively soon while retaining the option for limited strikes if needed, and claimed that Iran’s leadership had requested a ceasefire, though the statement was rejected by the country’s foreign ministry. Markets remained attentive ahead of Trump’s scheduled public address. Notable gains were led by LG Energy Solution (3.07%), Hanwha Aerospace (7.50%), and KB Financial (3.30%), while technology stocks were mixed, with Samsung Electronics flat and SK Hynix edging lower (-0.67%).

The benchmark KOSPI soared 8.44% to close at 5,479 on Wednesday, rebounding sharply after a four-day decline as easing geopolitical concerns boosted global risk appetite. Sentiment improved after US President Donald Trump signaled that military operations in Iran could end within weeks, raising hopes of de-escalation in the Middle East and relieving pressure on oil prices and inflation. The rally was further supported by strong external fundamentals, as South Korea’s exports jumped 48.3% year-on-year to a record $86.1 billion in March, driven by robust semiconductor shipments. The data reinforced confidence in the earnings outlook for the country’s export-heavy, chip-driven equity market. Gains in Seoul also tracked a broad global rebound, with Wall Street posting its strongest session in months, adding momentum to regional equities. Notable advances were seen in Samsung Electronics (13.64%), SK hynix (11.40%), Hyundai Motor (9.54%), SK Square (8.04%), and Hanwha Aerospace (7.13%).