South Korean Shares Extend Gains on Chip Strength
South Korea's benchmark KOSPI rose 0.5% to around 6,875 as major chipmakers and robust semiconductor exports supported sentiment, while higher U.S. Treasury yields capped gains.
The benchmark KOSPI rose 0.5% to around 6,875 on Friday, extending gains from the previous session, as strength in major chipmakers and robust semiconductor exports supported investor sentiment.
Samsung Electronics and SK hynix climbed about 1% and 4%, respectively, helped by continued expectations for shareholder returns.
Strong semiconductor exports provided further support, with chip shipments nearly tripling to $26 billion in the first 20 days of August, reinforcing expectations that AI-driven demand will continue to support Korea's key technology sector.
Gains were also recorded in KB Financial Group (2.0%), Shinhan Financial Group (3.0%), and SK Inc (2.3%).
Meanwhile, renewed gains in US Treasury yields limited the upside, as investors grew skeptical that the Treasury's expanded bond buyback plan would provide lasting relief from elevated borrowing costs.
Brent crude also rose more than 2% amid renewed US-Iran tensions, raising concerns over inflation and higher energy costs.