South Korean Shares Close Higher

The benchmark KOSPI rose 0.43% to close at 7,764 on Thursday, reversing earlier losses as investors turned optimistic on the outlook for the country's semiconductor sector. SK Hynix (2.64%) led the gains, alongside SK Square (3.80%), LG Energy Solution (1.04%), and HD Hyundai Heavy Industries (1.56%). Sentiment drew strength from South Korea's robust exports, which surged 86% year-on-year in the first 10 days of June to a record high, with semiconductor shipments more than tripling from a year earlier. Risk appetite was further supported by softer-than-expected US consumer inflation data, easing concerns over a more aggressive Federal Reserve policy stance. However, gains were capped by lingering geopolitical uncertainty after the US launched additional strikes against Iran, raising concerns over potential disruptions to shipping through the Strait of Hormuz and pushing oil prices higher.

The benchmark KOSPI traded lower to around 7,700 on Thursday, extending losses from the previous session amid weakness in global technology shares and escalating tensions in the Middle East. Chipmakers remained under pressure after a renewed selloff in US semiconductor stocks fueled concerns over stretched AI-related valuations, weighing on major Korean tech names. Samsung Electronics (-0.3%) edged lower, while Hyundai Motor (-3.0%), LG Energy Solution (-2.5%), Kia Corporation (-4.7%), Hanwha Aerospace (-5.0%), and Doosan Enerbility (-5.2%) posted sharper declines. Market sentiment was also dampened by rising geopolitical risks after the US threatened further military action against Iran, raising fears of supply disruptions in the Strait of Hormuz and pushing oil prices higher. Meanwhile, South Korea’s exports surged 86% year-on-year in the first 10 days of June, reaching a record high on robust semiconductor shipments and helping limit deeper losses.

The benchmark KOSPI plunged 4.52% to close at 7,731 on Wednesday, reversing gains from the previous session and tracking overnight losses on Wall Street amid escalating tensions between the US and Iran. Risk appetite deteriorated after the US launched new strikes against Iran in response to the downing of an American military helicopter, raising concerns over broader regional instability and pushing oil prices higher. Technology shares also came under pressure after a selloff in US chipmakers, while investors locked in profits amid resurfacing concerns over stretched valuations following the market's recent AI-driven rally. Samsung Electronics (-6.06%) and SK hynix (-7.54%) led the decline, while losses were also recorded in SK Square (-6.78%), Hyundai Motor (-5.79%), and LG Energy Solution (-2.77%). In contrast, Hanwha Aerospace (1.48%) outperformed on expectations of increased defense spending amid heightened geopolitical uncertainty.