Key Takeaways
- South Korean shares clawed back early losses on Tuesday.
- Chipmakers, including Samsung Electronics and SK Hynix, saw gains.
- The KOSPI index rose 0.15% to 6,694.11.
South Korean shares recovered from early losses on Tuesday, as investors sought bargains in chip stocks, which had experienced a three-day decline.
The benchmark KOSPI index, which had fallen nearly 1% earlier in the session, ended the day up 9.74 points, or 0.15%, at 6,694.11 as of 0132 GMT.
Chipmakers, particularly Samsung Electronics and SK Hynix, saw gains, with Samsung Electronics rising 0.70% and SK Hynix gaining 1.27%.
Other index heavyweights also showed mixed performance, with LG Energy Solution climbing 2.28%, while Hyundai Motor and Kia Corp saw slight changes, with Hyundai Motor up 0.40% and Kia Corp down 0.28%.
Steelmaker POSCO Holdings added 2.07%, while drugmaker Samsung BioLogics fell 0.35%.
Foreigners were net sellers of shares worth 544.1 billion won ($403.46 million), reflecting cautious investor sentiment.
The won depreciated by 0.20% to 1,348.9 per dollar, compared to its previous close at 1,346.2.
In the money and debt markets, September futures on three-year treasury bonds lost 0.05 point to 102.63, while the most liquid three-year Korean treasury bond yield rose 3.0 basis points to 4.045%.
The benchmark 10-year yield rose 1.9 basis points to 4.551%, indicating a slight increase in bond market activity.
The market is seen recovering sharp losses in the previous session, when it already priced in downward pressure from high US bond yields and a slump in US chip stocks.
Han Ji-young, Analyst at Kiwoom Securities
