South Korean Shares Pull Back From 8,000

The benchmark KOSPI fell more than 1% to around 7,880 on Friday, retreating from record highs near 8,000 as investors locked in profits after a sharp AI rally. Sentiment was also weighed by concerns over concentration in heavyweight semiconductor stocks and risks surrounding a planned strike at Samsung Electronics’ chip division next week. Still, optimism surrounding the Trump-Xi summit in Beijing helped cushion losses, as both sides signaled a willingness to maintain stable relations and agreed to keep the Strait of Hormuz open, easing concerns over global energy supplies. Hopes that improving US-China ties could support Korean semiconductor exports to China also underpinned sentiment, while overnight gains in major global AI-related stocks reinforced confidence in the AI boom. Large-cap performance was mixed, with Samsung Electronics (-1.0%), Doosan Enerbility (-1.8%), and Hanwha Aerospace (-4.5%) leading declines, while Hyundai Motor (7.6%) and LG Energy Solution (1.6%) gained.

The benchmark KOSPI climbed 1.75% to close at 7,981 on Thursday, extending gains to fresh record highs, amid a global tech rally. Semiconductor stocks led the advance after US technology shares rose to record levels overnight on continued AI enthusiasm, with Samsung Electronics advancing 3.52% on AI memory expansion plans. The finance minister vowed efforts to prevent a potential labour strike at Samsung, easing concerns over operational disruptions. Additionally, optimism surrounding the Trump-Xi summit supported investor sentiment, with markets expecting the talks to ease US-China trade tensions over tariffs and export controls. Domestic liquidity conditions also remained favorable after Bank of Korea data showed money supply continued to expand in March, driven by increased short-term funds flowing into equity investments. Other notable gainers included LG Energy Solution (2.62%), Samsung Biologics (2.55%), KB Financial Group (2.70%), POSCO Holdings (2.51%), and Celltrion (2.36%).

The benchmark KOSPI rose 2.63% to close at a record high of 7,844 on Wednesday, rebounding after a sharp selloff in the previous session as investors selectively bought semiconductor and large-cap technology stocks. Optimism over AI demand and strength in chip exports continued to support sentiment. Gains were led by Samsung Electronics (1.97%), SK Hynix (8.12%), SK Square (5.86%), Hyundai Motor (9.83%), HD Hyundai Heavy Industries (2.83%), and Kia Corporation (6.30%), while LG Energy Solution (-2.71%) and Doosan Enerbility (-4.46%) posted losses. Meanwhile, hotter-than-expected US inflation strengthened expectations that the Federal Reserve could keep interest rates elevated for longer, while lingering uncertainty over US-Iran peace talks and elevated oil prices continued to weigh on sentiment. Investors also monitored debate over proposals to redistribute AI-driven excess tax revenues and ongoing labor tensions at Samsung Electronics after wage talks with its union collapsed.