South Korean Shares Rally on US-Iran Ceasefire

The benchmark KOSPI rose 1.64% to close at 6,687 on Friday, extending gains from the previous session, as easing expectations for another US rate hike lifted global risk sentiment. US stocks rallied overnight after Fed Governor Christopher Waller signaled a preference for holding rates steady unless inflation surprises, while the 10-year Treasury yield retreated to 4.77% after reaching its highest level since November 2023. Semiconductor shares also advanced, with Samsung Electronics and SK hynix climbing 2.20% and 3.01%, respectively. Samsung narrowed its HBM market-share gap with SK hynix in Q2, supporting the outlook for Korea’s key chip sector. Gains were also recorded in SK Square (5.71%), Samsung Electro-Mechanics (3.71%), Samsung SDI (1.67%), and LG Electronics (1.15%). Meanwhile, renewed US plans for targeted semiconductor tariffs linked to companies’ domestic production could limit further gains, with details on rates and exemptions yet to be finalized.

The benchmark KOSPI rose 0.26% to close at 6,579 on Thursday, recovering part of the previous session’s losses as risk sentiment improved following overnight gains on Wall Street and easing Middle East tensions. President Donald Trump said renewed US attacks on Iran would likely be short-lived, while oil prices edged lower, easing concerns over inflation and energy costs. Large-cap performance was mixed, with gains in Hyundai Motor (1.32%), LG Energy Solution (5.32%), KB Financial Group (5.14%), Hanwha Aerospace (2.15%), Doosan Enerbility (3.66%), Shinhan Financial Group (3.80%), and HD Hyundai Heavy Industries (2.84%), while Samsung Electronics (-0.20%), SK hynix (-0.74%), and SK Square (-0.20%) declined. Gains were tempered by renewed concerns over potential US semiconductor tariffs, as Commerce Secretary Howard Lutnick said the administration is considering a targeted policy tying tariff relief to investment in US chip manufacturing.

The benchmark KOSPI slipped 3.99% to close at 6,563 on Wednesday, reversing gains from the previous session, as escalating US-Iran hostilities pushed oil prices higher and weighed on global risk sentiment. Brent crude climbed above $95 per barrel while WTI rose above $90, raising concerns over energy costs and inflation amid risks of disruptions to oil flows through the Strait of Hormuz. Additionally, the US 10-year Treasury yield climbed to its highest level since January 2025, adding pressure on equities and technology stocks. Samsung Electronics and SK hynix plunged 4.02% and 4.67%, respectively. Notable declines were also recorded in SK Square (-7.69%), Hyundai Motor (-5.74%), LG Energy Solution (-5.45%), Hanwha Aerospace (-3.78%), Doosan Enerbility (-5.65%), and Kia Corporation (-5.26%). South Korea’s annual inflation rose to 3.1% in August from 2.8% in July, although the government estimated price growth at around 2.5% excluding a temporary mobile-bill base effect.