South Korean Shares Climb on Global Tech Rally

The benchmark KOSPI climbed more than 6% to around 7,300 on Wednesday, extending gains from the previous session amid a global technology rally. Softer-than-expected US inflation data boosted semiconductor stocks and reduced expectations of near-term Federal Reserve tightening, supporting risk appetite. Heavyweight chipmakers led the advance, with SK Hynix surging nearly 12% after its US-listed shares rallied overnight, aided by a rebound in global semiconductor stocks and a positive brokerage initiation. Samsung Electronics also gained more than 5%, while SK Square (19.1%), Hyundai Motor (1.2%), LG Energy Solution (3.7%), Kia Corporation (2.5%), and Hanwha Aerospace (5.5%) advanced. Investor sentiment was further supported after South Korea's finance ministry said the country's economic recovery is solidifying on the back of robust exports and improving domestic demand, while raising its 2026 growth forecast to 3%.

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.