South Korean Shares Close Higher

The benchmark KOSPI rose 1.62% to close at 6,359 on Tuesday, recovering part of the previous session's losses as investors returned to beaten-down stocks. Overnight gains on Wall Street also supported sentiment, with strong earnings from Amazon and advances in major AI-related technology stocks boosting risk appetite. Samsung Electronics and SK hynix edged higher by 0.21% and 0.64%, respectively, while other gainers included SK Square (3.41%), LG Energy Solution (3.96%), HD Hyundai Heavy Industries (2.66%), and Hanwha Aerospace (9.25%). Meanwhile, investors remained cautious amid lingering uncertainty over AI-related valuations following the recent tech-led selloff. Conflicting signals over US-Iran negotiations also capped broader gains. Separately, South Korea's softer-than-expected inflation eased immediate price concerns, though firmer core inflation reinforced expectations for a cautious Bank of Korea policy stance.

The benchmark KOSPI edged down to around 6,230 on Tuesday, extending losses for a second straight session, as technology heavyweights remained under pressure. Samsung Electronics and SK Hynix both fell more than 3%. Other notable losses included Hyundai Motor (-3.3%), Samsung Electro-Mechanics (-3.6%), KB Financial Group (-0.7%), Kia Corporation (-1.4%), Shinhan Financial Group (-1.6%), and Hyundai Mobis (-5.1%). Meanwhile, South Korea's annual inflation rate eased to 2.8% in July from 3.2% in June, below market expectations of 3.0%, though a pickup in core inflation reinforced expectations that the Bank of Korea will maintain a restrictive monetary policy stance. Investors also monitored developments in the Middle East after US President Donald Trump said talks with Iran on reopening the Strait of Hormuz were underway, while uncertainty over the outcome of the negotiations kept risk appetite in check.

The benchmark KOSPI fell 5.12% to close at 6,257 on Monday, reversing gains from the previous session as investors locked in profits. Profit-taking followed the index's roughly 17% surge on Friday, its biggest one-day gain on record, with heavyweight chipmakers giving back part of their sharp gains. Meanwhile, Morgan Stanley upgraded South Korean equities to overweight, saying the recent leverage-driven selloff was largely technical and projecting 36% upside for the KOSPI. Separately, US President Donald Trump called off a planned strike on Iran, which pushed oil prices lower and offered some support to market sentiment. Technology heavyweights led the decline, with Samsung Electronics and SK Hynix falling 8.95% and 8.56%, respectively. Other notable losses included SK Square (-1.88%), LG Energy Solution (-4.27%), HD Hyundai Heavy Industries (-2.60%), Kia Corporation (-2.20%), Samsung Biologics (-4.71%), and SK Inc. (-7.18%).