South Korean Shares Close Higher on AI Optimism

The benchmark KOSPI rose 0.97% to close at 6,756 on Monday, recovering part of the previous session's losses as optimism over major AI cooperation agreements boosted technology shares. Investor sentiment improved after South Korean firms announced a series of AI partnerships with global technology companies, involving about $950 billion worth of projects, highlighted by a $750 billion long-term semiconductor supply deal between SK Group and Nvidia and Nvidia's $1 billion investment in Naver. Samsung Electronics and SK Hynix led the advance, rising 1.80% and 3.24%, respectively, alongside gains in Naver (8.43%), LG Energy Solution (1.06%), Samsung Biologics (1.78%), LG Electronics (1.83%), Hanwha Ocean (1.02%), and HD Korea Shipbuilding (1.75%). Additionally, easing geopolitical tensions supported risk appetite after the US halted strikes on Iran over the weekend, sending oil prices sharply lower.

The benchmark KOSPI fell more than 1% to around 6,620 on Monday, extending losses from the previous session as weakness in US technology stocks continued to weigh on investor sentiment. The decline followed another selloff on Wall Street, with investors staying cautious ahead of major US technology earnings and this week's Federal Reserve policy decision, which could offer fresh clues on AI spending and interest rates. Samsung Electronics (-0.7%), SK Hynix (-1.4%), SK Square (-4.9%), Hyundai Motor (-1.1%), and Hanwha Aerospace (-7.7%) were among the notable decliners. Meanwhile, easing geopolitical tensions after the US paused strikes on Iran over the weekend pushed oil prices sharply lower and improved global risk sentiment. Markets also found support from a series of AI cooperation agreements between South Korean firms and global technology companies, including a long-term semiconductor supply deal involving SK Group and Nvidia, as well as Nvidia's investment in Naver.

The benchmark KOSPI slipped 5.72% to close at 6,691 on Friday, snapping a three-day rally as a selloff in technology stocks weighed on investor sentiment. South Korean chipmakers declined sharply following a selloff in major US technology companies, which raised concerns that slowing returns from heavy AI investments could weaken demand expectations for semiconductor suppliers. Samsung Electronics and SK hynix dropped 7.59% and 8.29%, respectively, alongside losses in SK Square (-9.01%), Hyundai Motor (-7.99%), and LG Energy Solution (-4.89%). At the same time, Brent crude climbed above $100 per barrel amid escalating Middle East tensions, fueling concerns over energy supply disruptions and prompting a broader risk-off move across global markets. Foreign investors sold around KRW 1.6 trillion worth of Korean equities, further weighing on sentiment. Separately, new US tariff measures on South Korea and other trading partners added to uncertainty over the export outlook.