South Korean Shares Rally on Chip Gains

The benchmark KOSPI climbed more than 1% to around 6,995 on Monday, rallying for a second straight session amid strong global semiconductor momentum. Gains were led by Samsung Electronics and SK hynix, advancing nearly 4% and more than 1%, respectively, after US semiconductor stocks rallied, with the Philadelphia Semiconductor Index rising 2.78% on Friday. Additionally, South Korea's exports surged 78% year-on-year in the first 20 days of September, driven by a 259% jump in semiconductor shipments to $34.1 billion, highlighting continued strength in chip demand and a strong earnings outlook for chipmakers. Other notable performers included SK Square (4.1%), KB Financial Group (1.1%), Samsung C&T Corp (4.4%), Shinhan Financial Group (2.3%), and Hana Financial Group (1.7%). Meanwhile, Brent crude remained above $100 a barrel amid ongoing Middle East tensions, keeping inflation and broader macroeconomic concerns in focus.

The benchmark KOSPI climbed 2.66% to close at 6,894 on Friday, recovering losses from the previous session, as a rebound in US technology stocks lifted regional equities. The Nasdaq advanced 1.7% overnight, with technology shares recovering after the Federal Reserve’s latest rate hike, while easing US Treasury yields and lower Brent crude prices reduced concerns over borrowing costs and inflation. Additionally, strong demand for AI-related semiconductors continued to drive gains in major chipmakers, with Samsung Electronics and SK hynix advancing 2.97% and 5.56%, respectively. Also, reports that the US may delay announcing new tariffs related to excess industrial capacity until after next week’s Trump-Xi summit reduced an immediate trade risk for Korean exporters. Meanwhile, renewed pressure on the Bank of Korea to raise rates following the Federal Reserve’s latest hike remained a potential constraint on the broader recovery.

The benchmark KOSPI edged down 0.04% to close at 6,715 on Thursday, ending nearly flat from the previous session as investors weighed the Federal Reserve’s first rate hike in more than three years. The Fed raised its policy rate by 25bp to 3.75%-4.00% and signaled another increase could come later this year, limiting the index’s advance despite the move being largely priced in. Additionally, foreign investors extended their net selling streak to seven sessions. Individual stocks were mixed, with Samsung Electronics (-0.20%), SK hynix (-0.85%), SK Square (-1.32%), and LG Energy Solution (-0.86%) declining, while KB Financial Group (1.30%), Doosan Enerbility (1.91%), and Hanwha Aerospace (3.89%) gained. Meanwhile, Brent crude fell nearly 3% to around $105 a barrel as concerns over oil supply disruptions eased, reducing some of the drag from elevated energy costs.