South Korean shares tumble over 5% after record rally as chip heavyweights retreat

Round-up of South Korean financial markets:

South Korean shares fell more than 5% on Monday after a record rally in the previous session, as sharp losses in chipmakers outweighed support from strong export data.

The benchmark KOSPI declined 5.5% to 6,231.66 by 0031 GMT after a volatile July.

The index fell 22.2% last month in its steepest drop since October 2008, despite an 18% rally on Friday.

On the geopolitical front, US President Donald Trump said he had held off on launching a fresh attack on Iran, opting instead to pursue a swift agreement aimed at curbing Tehran’s nuclear programme and reopening the Strait of Hormuz.

Over the weekend, data showed South Korea’s exports rose 62.8% in July, beating expectations as booming global demand for AI-related semiconductors and computers drove a 179% jump in chip exports and a 404% surge in computer sales.

Among index heavyweights, chipmaker Samsung Electronics fell 7.05%, while peer SK Hynix lost 7.16%.

Battery maker LG Energy Solution slid 4.27%. Samsung and SK Hynix together account for more than half of the KOSPI’s weighting.

Of the total 883 traded issues, 474 shares advanced, while 342 declined.

Foreigners were net sellers of shares worth 481.3 billion won ($336.03 million).

The won was quoted at 1,435.5 per dollar on the onshore settlement platform, steady from its previous close.

In offshore trading, the won was quoted at 1,431.9 per dollar, up 0.7% on the day, while in non-deliverable forward trading its one-month contract was quoted at 1,431.6.

The KOSPI has risen 50.25% so far this year.

The won has strengthened 0.3% against the dollar this year.

In money and debt markets, September futures on three-year treasury bonds lost 0.01 point to 103.22.

The most liquid three-year Korean treasury bond yield was flat at 3.757%, while the benchmark 10-year yield was flat at 4.262%.‑Reuters