South Korean Shares Rise on Tech Gains

The benchmark KOSPI climbed more than 1% to around 7,060 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 Samsung Electronics (1.1%) and SK hynix (3.4%) advanced amid sustained optimism over AI-related demand. Additionally, defense and shipbuilding stocks gained following fresh overseas order developments. Hanwha Ocean gained 2.0% after being selected as the preferred bidder for a $509 million Thai frigate project. Other notable performers included Samsung Electro-Mechanics (3.0%), Doosan Enerbility (3.2%), Hanwha Aerospace (1.7%), HD Hyundai Heavy Industries (1.8%), LS Electric (6.5%), and Hyosung Heavy Industries (4.0%). 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.

The benchmark KOSPI climbed more than 1% to around 7,095 on Tuesday, touching a three-week intraday high, as renewed optimism over AI-driven semiconductor demand lifted tech stocks. Samsung Electronics and SK hynix rose more than 1% and 3%, respectively. Expectations for stronger memory demand were reinforced by Samsung's 39.4% DRAM market share in Q2 and forecasts of critically tight supply as hyperscalers ramp up AI infrastructure spending. Samsung's planned shareholder-return program also raised expectations for buybacks of its discounted preferred shares. Other notable performers included SK Square (3.0%), Doosan Enerbility (3.3%), SK Inc. (1.2%), and Hanmi Semiconductor (4.8%). Additionally, South Korea's August exports rose 68.7% year-on-year as semiconductor exports surged more than 200%, while Q2 GDP expanded 0.6% quarter-on-quarter. However, escalating Middle East tensions pushed Brent crude higher, raising inflation concerns and the risk of tighter global monetary policy.