South Korean Shares Edge Lower on Profit-Taking

The benchmark KOSPI edged down to around 6,970 on Tuesday, reversing gains from the previous session as profit-taking and elevated global bond yields weighed on the market. Investors took profits following recent gains, particularly in large-cap technology shares. At the same time, the US 10-year Treasury yield climbed to a 24-year high above 5.34%, reinforcing concerns over higher-for-longer rates. Meanwhile, Wall Street's Nasdaq reached a record high, reinforcing the positive outlook for Korean chipmakers. Samsung Electronics also rose ahead of its third-quarter earnings guidance later this week, with analysts forecasting record operating profit of around KRW108.1 trillion on robust memory chip demand. Large-cap performance was mixed, with losses in SK hynix (-2.2%), Hanwha Aerospace (-2.4%), and Samsung Biologics (-1.7%), while Samsung Electronics (+0.2%), SK Square (+1.6%), and LG Energy Solution (+1.8%) posted gains.

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.