South Korean Shares Rally on Tech Rebound

The benchmark KOSPI slipped 2.62% to close at 6,626 on Thursday, extending losses for a third straight session as elevated global bond yields and inflation concerns weighed on equities. The US 10-year Treasury yield climbed to 5.35%, its highest level since 2002, while Federal Reserve minutes showed most officials expected another rate increase this year, keeping the outlook for US borrowing costs elevated and weighing particularly on technology stocks. At the same time, rising oil prices added to inflation risks and limited the scope for monetary easing. Losses were seen in Samsung Electronics (-2.42%), SK hynix (-2.44%), SK Square (-8.06%), Hyundai Motor (-3.42%), Hanwha Aerospace (-8.33%), and Doosan Enerbility (-3.11%). Meanwhile, Samsung Electronics estimated a record third-quarter operating profit of KRW 107.4 trillion, up 782.5% year-on-year, on strong AI demand and higher memory chip prices. South Korean markets will be closed on Friday for a national holiday.

The benchmark KOSPI slipped 1.98% to close at 6,804 on Wednesday, extending losses from the previous session as concerns over the sustainability of the semiconductor earnings boom and elevated global bond yields weighed on sentiment. Investors remained cautious ahead of Samsung Electronics' preliminary third-quarter earnings report on Thursday, with attention focused on whether strong memory-chip demand and pricing can last into 2027 and 2028. At the same time, US Treasury yields remained elevated despite retreating from multidecade highs, keeping pressure on equity valuations. Losses were seen in SK hynix (-2.54%), Samsung Electronics (-0.92%), SK Square (-1.64%), Hyundai Motor (-3.30%), Hanwha Aerospace (-4.59%), and HD Hyundai Heavy Industries (-4.76%). Meanwhile, oil prices fell amid recovering Middle Eastern exports and a planned G7 release of strategic reserves. South Korea's stronger coverage of November crude oil supplies also reduced concerns over potential energy disruptions.

The benchmark KOSPI fell 0.89% to close at 6,941 on Tuesday, reversing gains from the previous session as profit-taking and elevated global bond yields weighed on the market. Investors took profits following recent gains, particularly in large-cap technology shares. At the same time, the US 10-year Treasury yield climbed to a 24-year high above 5.34%, reinforcing concerns over higher-for-longer rates. Foreign investors and institutions were also net sellers, offloading a combined KRW 1.75 trillion worth of stocks. Losses were seen in Samsung Electronics (-1.45%), SK hynix (-3.53%), Hanwha Aerospace (-4.66%), Shinhan Financial Group (-1.72%) and HD Hyundai Heavy Industries (-1.41%). Meanwhile, Wall Street's Nasdaq reached a record high, offering a positive read-through for Korean chipmakers. Investors awaited Samsung Electronics' third-quarter earnings guidance later this week, with analysts forecasting record operating profit of around KRW108.1 trillion on robust memory chip demand.