South Korean Shares End Lower

The benchmark KOSPI fell 0.25% to close at 7,034 on Thursday, reversing gains from the previous session amid surging oil prices and higher US Treasury yields. Brent crude rose above $101 a barrel, its highest level since May, as escalating US-Iran tensions raised concerns over Middle East energy disruptions, adding to inflation concerns and uncertainty over monetary policy. The US 10-year Treasury yield also climbed to its highest level since November 2023, while Wall Street stocks fell for a third straight session, weighing further on Korean shares. Large-cap performance was mixed, with losses in LG Energy Solution (-1.21%), Samsung Biologics (-1.72%), Doosan Enerbility (-1.42%), and HD Hyundai Heavy Industries (-1.19%), while SK hynix edged up 0.16% and Samsung Electronics was flat. Meanwhile, South Korea and France agreed to strengthen cooperation in AI and semiconductors, including joint research and investment, offering some longer-term support for Korea's technology sector.

The benchmark KOSPI climbed 1.40% to close at 7,052 on Wednesday, recovering losses from the previous session, as continued gains in semiconductor stocks lifted sentiment. The Philadelphia Semiconductor Index rose 1.3% overnight, while SK hynix advanced 3.51% amid sustained optimism over AI-related demand. Additionally, defense and shipbuilding stocks gained following fresh overseas order developments. Hanwha Ocean gained 2.32% after being selected as the preferred bidder for a $509 million Thai frigate project. Other notable performers included Samsung Electro-Mechanics (2.48%), LG Energy Solution (6.46%), Doosan Enerbility (2.46%), Hanwha Aerospace (1.95%), HD Hyundai Heavy Industries (4.27%), and LS Electric (5.49%). Meanwhile, escalating Middle East tensions pushed Brent crude toward $100 per barrel, raising concerns over inflation and weighing on broader risk sentiment, while elevated US Treasury yields further limited risk appetite.

The benchmark KOSPI fell 0.58% to close at 6,955 on Tuesday, reversing from an over one-month closing high in the previous session amid rising inflation concerns and elevated expectations for further Federal Reserve rate hikes. Brent crude climbed above $97 per barrel amid escalating Middle East tensions and concerns over supply disruptions. Iran warned of risks to shipping near the Strait of Hormuz despite an imminent deal with Oman to manage traffic. Among decliners were Samsung Electronics (-0.19%), Hyundai Motor (-2.04%), LG Energy Solution (-3.86%), KB Financial Group (-0.97%), and Kia Corporation (-2.34%). Retail investors sold a net 3.05 trillion won, outweighing combined foreign and institutional buying of 1.29 trillion won. Markets now await Friday’s US inflation report for further clues on the Federal Reserve’s rate path. Meanwhile, renewed optimism over AI investment and strong memory-chip demand continued to underpin semiconductor stocks.