South Korean Shares Close Higher on Chip Gains

The benchmark KOSPI rose 0.73% to close at 6,857 on Tuesday, recovering modestly from an over two-month low as heavyweight technology stocks rebounded. SK Hynix and Samsung Electronics climbed 3.74% and 3.63%, respectively, helping lift the broader market after the previous session's technology-led rout. Other gainers included HD Hyundai Electric (1.52%) and LS Electric Co. (1.57%), while notable losses were seen in Hyundai Motor (-4.39%), LG Energy Solution (-1.98%), KB Financial Group (-2.74%), and HD Hyundai Heavy Industries (-4.51%). Investors also remained focused on upcoming US inflation data and earnings from major chipmakers and US technology companies for clearer indications of the outlook for AI demand and capital spending, preventing a stronger rebound. Renewed Middle East tensions following the latest escalation between the US and Iran over the Strait of Hormuz also kept broader market sentiment cautious.

The benchmark KOSPI slipped nearly 3% to around 6,610 on Tuesday, extending losses to its lowest level since late April amid renewed selling in heavyweight chipmakers. SK Hynix fell roughly 8% after its US-listed shares tumbled 9.3% overnight, while Samsung Electronics dropped more than 2%. Other notable decliners included SK Square (-5.9%), Hyundai Motor (-8.7%), LG Energy Solution (-3.4%), KB Financial Group (-2.4%), HD Hyundai Heavy Industries (-5.3%), Doosan Enerbility (-6.4%), and Hanwha Aerospace (-7.1%). Retail investors were heavy net sellers, while broader market sentiment remained cautious ahead of earnings reports from major chipmakers and US technology companies for fresh signals on AI demand and capital spending. Additionally, heightened Middle East tensions after the US reinstated a blockade of Iranian ports and President Donald Trump announced a 20% charge on cargo passing through the Strait of Hormuz kept oil prices elevated and dampened global risk appetite.

The benchmark KOSPI rose 0.5% to around 6,840 on Tuesday, edging higher after hitting an over two-month low in the previous session as bargain hunting emerged following a sharp selloff in AI-related chipmakers. Heavyweight technology stocks led the recovery, with Samsung Electronics and SK Hynix advancing 5.5% and 4.1%, respectively, after plunging nearly 11% and a record 15% in the previous session. Other notable gainers included SK Square (2.2%), LS Electric (2.8%), and Hyosung Heavy Industries (1.1%). However, gains remained limited as investors continued to monitor heightened Middle East tensions after the US reinstated a blockade of Iranian ports and President Donald Trump announced a 20% charge on cargo passing through the Strait of Hormuz, lifting oil prices and weighing on global risk sentiment. Investors also looked ahead to earnings reports from major chipmakers and large US technology companies for fresh signals on AI demand and capital spending plans.