South Korean shares erase early gains as chip volatility, AI concerns weigh
- The benchmark KOSPI was down 35.40 points, or 0.38%, at 8,362.96
SEOUL: Round-up of South Korean financial markets:
South Korean shares reversed early gains to trade lower on Tuesday, as volatility in heavyweight semiconductor stocks weighed on the broader market, with investors turning cautious about the durability of the AI-driven chip rally.
The benchmark KOSPI was down 35.40 points, or 0.38%, at 8,362.96, as of 0217 GMT. Earlier in the session, the index climbed up to 1.4%, before shedding gains to drop as much as 2.1%.
The KOSPI has fallen 0.2% this month, though it remains up 67% for the quarter and 101% year-to-date. Shares of chipmaker Samsung Electronics were up 1.55%, easing from a 3% climb earlier in the day. Peer SK Hynix erased early gains to fall 1.03%.
On Monday, South Korea unveiled a sweeping semiconductor and artificial intelligence strategy, with President Lee Jae Myung announcing more than $576 billion in chip investments to bolster global competitiveness and rebalance growth.
“It is necessary to brace for volatility in semiconductor stocks capping the benchmark’s upside as it is the last trading day of the quarter and the first half,” said Han Ji-young, an analyst at Kiwoom Securities.
Battery maker LG Energy Solution slid 8.74%, while Hyundai Motor and sister automaker Kia Corp were down 0.60% and 1.78%, respectively.
Steelmaker POSCO Holdings shed 4.80%, while drugmaker Samsung BioLogics fell 4.56%.
Of the total 916 traded issues, 252 shares advanced, while 626 declined. Foreigners were net sellers of shares worth 2.1 trillion won ($1.36 billion).
The won was quoted at 1,549.3 per dollar on the onshore settlement platform, 0.41% lower than its previous close at 1,543.0.
The most liquid three-year Korean treasury bond yield fell 1.6 basis points to 3.723%, while the benchmark 10-year yield fell 2.4 basis points to 4.100%. ‑Reuters