South Korean Shares Rebound

The benchmark KOSPI climbed 3.56% to close at 6,748 on Tuesday, rebounding from an almost three-month low as bargain hunting emerged in beaten-down technology stocks following last week's sharp selloff. Samsung Electronics and SK Hynix led the recovery, advancing 6.76% and 4.93%, respectively. At the same time, South Korea's exports surged 52.3% in the first 20 days of July, fueled by a 180% jump in semiconductor shipments amid sustained AI demand, further boosting confidence in the sector's earnings outlook. Other notable gainers included SK Square (6.97%), KB Financial Group (3.02%), Kia Corporation (2.64%), Shinhan Financial Group (3.34%), Hanwha Aerospace (2.17%), Doosan Enerbility (2.93%), and SK Inc (3.28%). Lingering concerns over the conflict in the Middle East kept investors cautious, although reports of renewed mediation efforts between Iran and the US helped improve risk appetite and supported the market's rebound.

The benchmark KOSPI fell 4.46% to close at 6,516 on Monday, its lowest level since late April, as weakness in global semiconductor stocks weighed on investor sentiment. The decline followed another week of losses on Wall Street, where semiconductor shares remained under pressure amid lingering concerns over AI-related spending and valuations, weighing on broader market sentiment. Escalating Middle East tensions also dampened investor sentiment following continued US military strikes against Iran, fueling concerns over disruptions to energy supplies and pushing oil prices higher. Losses were seen in Samsung Electronics (-4.12%), SK Hynix (-3.85%), Hyundai Motor (-6.35%), LG Energy Solution (-4.79%), and KB Financial Group (-7.18%). Meanwhile, Samsung Biologics agreed to acquire Switzerland's PolyPeptide Group in a $1.8 billion all-cash deal, the largest acquisition in South Korea's biopharmaceutical industry, expanding its global CDMO business and peptide manufacturing capabilities.

The benchmark KOSPI plunged 6.37% to close at 6,821 on Thursday, erasing gains from the previous session and approaching an over two-month low, as a global semiconductor selloff pressured technology shares. The decline followed overnight losses in US chipmakers, which reignited concerns over AI valuations and dragged South Korea's semiconductor heavyweights lower, with SK Hynix (-11.58%) and Samsung Electronics (-8.94%) tumbling sharply. Other notable losses included SK Square (-12.30%), Samsung Electro-Mechanics (-9.62%), and Doosan Enerbility (-4.52%). Investor sentiment was also dampened by escalating Middle East tensions after fresh US strikes on Iran fueled concerns over energy supplies and weighed on risk appetite. Separately, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75% in line with expectations, marking the start of a new tightening cycle. Markets are closed on Friday in accordance to Constitution Day, trading will resume on July 20.