South Korean shares start week higher as chip makers rise

SEOUL: Round-up of South Korean financial markets:

South Korean shares rose on Monday, led by chipmaker heavyweights, after Wall Street’s record-setting rally eased worries about interest rate hikes.

The benchmark KOSPI was up 49.97 points, or 0.80%, at 6,308.74 as of 0158 GMT, after seven consecutive weeks of declines.

US stocks advanced on Friday, with the S&P closing at a record high to cap off a strong week of gains for the major indexes, after data showed the US economy unexpectedly shed jobs last month and dampened expectations the Federal Reserve would raise interest rates at its September meeting.

“This week, there will be earnings releases by semiconductor and AI-related firms abroad, which are expected to ease worries about a peak-out in AI and memory chip demand,” said Han Ji-young, an analyst at Kiwoom Securities.

“It will be a factor improving foreign flows after a heavy sell-off in chipmaker stocks last week,” Han said.

Among index heavyweights, chipmaker Samsung Electronics rose 0.43%, while peer SK Hynix gained 1.62%.

Battery maker LG Energy Solution was flat.

Hyundai Motor and sister automaker Kia Corp were up 1.77% and down 0.59%, respectively. Steelmaker POSCO Holdings was flat, while drugmaker Samsung BioLogics rose 0.03%.

Of the 910 issues traded, 630 shares advanced, while 248 declined.

Foreigners were net sellers of shares worth 526.4 billion won ($371.75 million).

The won was quoted at 1,414.7 per dollar on the onshore settlement platform, 0.37% lower than its previous close at 1,409.5. In money and debt markets, September futures on three-year treasury bonds lost 0.04 point to 103.35.

The most liquid three-year Korean treasury bond yield was flat at 3.751%, while the benchmark 10-year yield was flat at 4.198%.