Korean Shares Climb on Chipmaker Gains

The benchmark KOSPI climbed 2.66% to close at 6,894 on Friday, recovering losses from the previous session, as a rebound in US technology stocks lifted regional equities. The Nasdaq advanced 1.7% overnight, with technology shares recovering after the Federal Reserve’s latest rate hike, while easing US Treasury yields and lower Brent crude prices reduced concerns over borrowing costs and inflation. Additionally, strong demand for AI-related semiconductors continued to drive gains in major chipmakers, with Samsung Electronics and SK hynix advancing 2.97% and 5.56%, respectively. Also, reports that the US may delay announcing new tariffs related to excess industrial capacity until after next week’s Trump-Xi summit reduced an immediate trade risk for Korean exporters. Meanwhile, renewed pressure on the Bank of Korea to raise rates following the Federal Reserve’s latest hike remained a potential constraint on the broader recovery.

The benchmark KOSPI edged down 0.04% to close at 6,715 on Thursday, ending nearly flat from the previous session as investors weighed the Federal Reserve’s first rate hike in more than three years. The Fed raised its policy rate by 25bp to 3.75%-4.00% and signaled another increase could come later this year, limiting the index’s advance despite the move being largely priced in. Additionally, foreign investors extended their net selling streak to seven sessions. Individual stocks were mixed, with Samsung Electronics (-0.20%), SK hynix (-0.85%), SK Square (-1.32%), and LG Energy Solution (-0.86%) declining, while KB Financial Group (1.30%), Doosan Enerbility (1.91%), and Hanwha Aerospace (3.89%) gained. Meanwhile, Brent crude fell nearly 3% to around $105 a barrel as concerns over oil supply disruptions eased, reducing some of the drag from elevated energy costs.

The benchmark KOSPI edged up to around 6,755 on Thursday, extending gains from the previous session as the Fed’s rate hike was largely priced in. The Fed raised its policy rate by 25bp to 3.75%-4.00%, its first increase since 2023, and signaled another hike could come later this year. The move widened the US-Korea rate gap to as much as 1 percentage point, although Korean authorities said its market impact should be limited as the decision was already reflected in asset prices. At the same time, easing oil prices after the US said Saudi Arabia’s damaged East-West pipeline could resume operations within days reduced inflation concerns following the recent surge in crude prices. Additionally, stabilization in global AI and semiconductor shares helped lift technology stocks after recent declines, with Samsung Electronics and SK hynix edging higher. Other gainers included KB Financial Group (2.0%), Doosan Enerbility (2.3%), Hanwha Aerospace (2.9%), and HD Hyundai Heavy Industries (6.9%).