South Korean Shares Rise on Tech Gains

The benchmark KOSPI edged up 0.5% to around 6,290 on Monday, rebounding from the previous session as gains in technology stocks tracked Wall Street’s record-setting performance. The S&P 500 reached a fresh record while the Nasdaq advanced on Friday after a weaker-than-expected US jobs report showed an unexpected contraction in July employment, easing expectations of a September Federal Reserve rate hike. The improved rate outlook supported demand for technology stocks, with Samsung Electronics and SK hynix both rising around 1%. Other gainers included Hyundai Motor (+2.8%), Hanwha Aerospace (+4.4%), HD Hyundai Heavy Industries (+2.0%), and Doosan Enerbility (+2.1%). Meanwhile, uncertainty over a US-Iran deal to reopen the Strait of Hormuz persisted after Iran denied direct talks with Washington, limiting the recovery in the KOSPI. WTI crude also rose above $79 a barrel, raising concerns over higher energy costs and inflation.

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.