South Korean Shares Edge Lower as Oil and Yields Climb

The benchmark KOSPI fell 0.44% to close at 6,009 on Wednesday, extending its losing streak to six sessions as renewed concerns over AI spending and a weaker-than-expected sales outlook from ASML erased early gains. The Dutch chipmaking equipment supplier reported strong third-quarter earnings, but its 2026 sales forecast fell short of market expectations, despite its shares having surged 84% over the past year. The disappointing outlook weighed on investor confidence across the semiconductor sector, erasing the KOSPI’s early gains. Investors also remained cautious ahead of US inflation data, which could influence the Federal Reserve’s policy outlook. Losses were recorded in SK hynix (-1.66%), SK Square (-0.58%), Samsung Biologics (-1.99%), Samsung C&T Corp (-2.83%), KB Financial Group (-1.97%), Shinhan Financial Group (-4.71%), Doosan Enerbility (-1.14%), and Hana Financial Group (-2.25%), while Samsung Electronics ended flat.

The benchmark KOSPI rose nearly 1% to around 6,080 on Wednesday, snapping a five-day slide near a more than two-month low, as investors bought semiconductor shares following a sharp selloff in the previous session. Samsung Electronics and SK hynix climbed nearly 2% and more than 1%, respectively, recovering part of Tuesday's plunge of 7.39% and 10.09%. Gains also extended to other heavyweight stocks, including SK Square (1.28%), LG Energy Solution (2.7%), Hyundai Motor (1.1%), Kia Corporation (1.4%), Hyundai Mobis (4.1%), and Samsung Electro-Mechanics (1.7%). Meanwhile, lingering concerns over Chinese chipmaker CXMT's technological advances and the sustainability of AI spending continued to weigh on the sector. Investors also remained cautious ahead of the US September inflation report, with an expected acceleration in consumer prices potentially complicating the Federal Reserve's interest rate outlook and adding to concerns over technology stock valuations.

The benchmark KOSPI plunged 5.46% to close at 6,035 on Tuesday, after hitting a more than two-month intraday low of 5,911, as mounting concerns over AI valuations and Chinese competition triggered heavy selling in semiconductor stocks. Samsung Electronics and SK hynix slipped 7.19% and 10.09%, respectively, after reports of technological progress by Chinese rival CXMT and renewed doubts about the sustainability of AI spending. Foreign investors sold a net KRW 4.51 trillion worth of shares, adding to the decline. Additionally, Brent crude prices climbed above $106 per barrel amid escalating Middle East tensions, heightening concerns over imported inflation and the interest-rate outlook. Investors are awaiting September US CPI data for further clues on the Federal Reserve's policy outlook. Other notable decliners included SK Square (-13.01%), Samsung Electro-Mechanics (-8.41%), Hyundai Motor (-1.56%), Doosan Enerbility (-1.82%), Hanwha Aerospace (-2.55%), and LG Electronics (-3.79%).