South Korean Shares Climb as Chip Stocks Rally

The benchmark KOSPI rose 0.46% to close at 7,004 on Friday, extending gains from the previous session as bargain hunting lifted major technology stocks. Strong results from Micron and an upbeat memory outlook provided a positive read-through for Korean chipmakers. SK hynix edged up 0.44%, while other gainers included LG Energy Solution (2.91%), Hanwha Aerospace (3.68%), Samsung Electro-Mechanics (1.28%), and LG Electronics (2.13%). Additionally, September exports surged 83.5% year-on-year to a record $120.9 billion, led by a 263% jump in semiconductor shipments, reinforcing the sector’s strong outlook. Meanwhile, Brent crude remained above $100 a barrel amid renewed Middle East tensions. Korea’s CPI held at 2.9% in September, while the BOK warned inflation could remain around 3% in October, keeping another rate hike in focus. South Korean markets will be closed on Monday for a national holiday.

The benchmark KOSPI edged down to around 6,950 on Friday, reversing gains from the previous session as concerns over domestic inflation and elevated global bond yields weighed on the index. Korea’s CPI held at 2.9% in September, while the BOK warned that inflation could stay around 3% in October, raising the prospect of another rate hike. At the same time, US Treasury yields stayed high after the 10-year yield briefly topped 5.3%, while oil prices climbed above $100 a barrel amid renewed Middle East tensions, adding to inflation risks. However, stronger-than-expected results and an upbeat memory outlook from Micron provided a positive read-through for Samsung Electronics and SK hynix, while record South Korean semiconductor exports reinforced the sector’s strong outlook. Large-cap stocks were mixed, with losses seen in Samsung C&T Corp (-1.4%), Doosan Enerbility (-0.85%), and HD Hyundai Heavy Industries (-1.0%), while Samsung Electronics and SK Square edged higher.

The benchmark KOSPI rose 1.95% to close at 6,971 on Thursday, snapping a three-day slide as gains in semiconductor-related stocks helped lift the index. Micron Technology’s stronger-than-expected results and upbeat revenue guidance highlighted continued demand for AI memory chips, while its increased long-term supply commitments reinforced the positive outlook for the sector. Samsung Electronics and SK hynix climbed 2.61% and 3.10%, respectively, along with gains in SK Square (1.32%), Hanwha Aerospace (2.78%), LG Energy Solution (0.98%), and Samsung Electro-Mechanics (2.95%). Additionally, South Korea’s September exports surged 83.5% year-on-year to a record $120.9 billion, led by semiconductor exports that jumped 263% to a record $60.3 billion, further underscoring robust chip demand. Meanwhile, elevated US Treasury yields remained an offset, with the 10-year yield above 5.3%, while foreign investors continued to sell Korean equities.