South Korean Shares Climb on Global Tech Rally

The benchmark KOSPI fell 1.79% to around 6,789 on Friday, snapping a three-day rally, as investors remained cautious ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium later in the day. The decline came despite a strong overnight session on Wall Street, following Nvidia’s stronger-than-expected earnings and upbeat revenue outlook. Korean chipmakers failed to track the gains, with Samsung Electronics and SK hynix both declining 3.20% and 3.70%, respectively, limiting the positive spillover from the US technology rally. At the same time, Samsung Biologics plunged 6.71% after announcing plans to raise KRW 3 trillion through a rights offering, adding further pressure to the index. Notable losses were also recorded in SK Square (-3.09%), HD Hyundai Heavy Industries (-3.19%), SK Inc (-2.88%), and LS Electric (-2.28%).

The benchmark KOSPI climbed 1.53% to close at 6,912 on Thursday, extending gains for a third straight session, supported by stronger-than-expected Nvidia earnings. Nvidia's revenue more than doubled in the second quarter, and its forecast for fiscal 2028 income growth of 70% exceeded analyst expectations, easing concerns over AI and semiconductor demand. Semiconductor stocks led the advance, with Samsung Electronics and SK hynix rising 1.34% and 1.90%, respectively. Other notable performers included LG Energy Solution (5.56%), Hanwha Aerospace (5.89%), KB Financial Group (1.02%), Shinhan Financial Group (1.49%), and HD Hyundai Heavy Industries (0.97%). Additionally, the Bank of Korea raised its 2026 growth forecast to 3.3% from 2.6%, citing stronger-than-expected semiconductor exports and a robust economic recovery. However, the central bank also raised its benchmark interest rate by 25 basis points to 3%, marking a second consecutive hike amid persistent inflationary pressures.

The benchmark KOSPI rose 0.97% to close at 6,808 on Wednesday, extending gains from the previous session, as semiconductor stocks advanced ahead of Nvidia’s earnings report. Samsung Electronics and SK hynix gained 1.95% and 0.72%, respectively, as US chip stocks rallied overnight, with the Nasdaq up 0.66% and helping boost sentiment toward Korea’s technology sector. Large-cap performance was mixed, with gains from Samsung C&T (5.72%), Doosan Enerbility (6.32%), and Shinhan Financial Group (1.03%), while Hyundai Motor (-3.09%), Hanwha Aerospace (-1.45%), and Kia Corporation (-2.67%) posted losses. Additionally, lower US Treasury yields supported equity sentiment by easing pressure on technology stock valuations. Falling oil prices and reduced concerns over disruptions in the Strait of Hormuz also reduced pressure on South Korea’s import costs. Meanwhile, investors remained cautious ahead of Nvidia’s earnings, which could influence the broader AI and semiconductor sector.