South Korean Shares Extend Decline

The benchmark KOSPI fell 0.60% to close at 6,259 on Friday, extending losses for a second straight session as investors awaited the US jobs report. The closely watched payrolls data is expected to provide fresh clues on the Federal Reserve's policy path, keeping investors cautious over the outlook for interest rates while they also assessed the latest round of US corporate earnings. Renewed uncertainty over the Strait of Hormuz pushed oil prices higher, adding to inflation concerns and further weighing on risk appetite. SK hynix plunged 5.22%, while notable losses were also recorded in SK Square (-3.30%), Hyundai Motor (-1.50%), HD Hyundai Heavy Industries (-0.79%), Hyundai Mobis (-2.95%), Naver (-7.30%), and Hanwha Ocean (-1.98%). Meanwhile, optimism over AI initiatives, including planned partnership talks between LG Group and Nvidia, helped cushion broader losses.

The benchmark KOSPI fell 4.58% to close at 6,296 on Thursday, reversing gains from the previous session, as a selloff in global technology stocks weighed heavily on semiconductor shares. Samsung Electronics and SK Hynix declined sharply by 6.50% and 10.67%, respectively, after the Nasdaq retreated overnight amid profit-taking in major tech names. Notable losses were also recorded in SK Square (-13.40%), Samsung Electro-Mechanics (-9.07%), Hyundai Motor (-1.73%), Doosan Enerbility (-1.17%), LS Electric (-4.48%), SK Inc (-9.79%), and LG Electronics (-2.79%). Limiting broader losses, South Korea reported a record current account surplus of $49.73 billion in June, driven by strong semiconductor exports that reinforced the country's export outlook. At the same time, reports of progress toward an interim transit arrangement between Iran and Oman eased concerns over disruptions to shipping through the Strait of Hormuz, supporting global risk sentiment.

The benchmark KOSPI rose 3.76% to close at 6,598 on Wednesday, extending gains from the previous session as hopes for a US-Iran agreement boosted risk appetite. Optimism that Washington and Tehran could reach a deal to reopen the Strait of Hormuz drove oil prices sharply lower, easing concerns over energy supply disruptions and inflation. The improvement in global sentiment lifted Wall Street to record highs overnight, with technology shares leading the advance after strong earnings from major US companies renewed confidence in AI-related spending, fueling a rebound in semiconductor stocks. Samsung Electronics gained 3.13%, while SK Hynix surged 6.72%. Other notable performers included SK Square (6.23%), Hyundai Motor (3.31%), LG Energy Solution (1.37%), Kia Corporation (2.85%), and HD Hyundai Heavy Industries (4.97%).