South Korean shares recoup early losses as chipmakers rebound

SEOUL: Round-up of South Korean financial markets: South Korean shares clawed back early losses on Tuesday, as bargain hunting in chip stocks followed a three-session slide that culminated in a more than 3% drop in the KOSPI a day earlier. The KOSPI was up 9. 74 points, or 0. 15%, at 6, 694. 11 as of 0132 GMT, after falling nearly 1% earlier in the session. The benchmark index lost 3. 26% in the previous session as chipmakers slumped, extending losses for a third consecutive session. “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, ” said Han Ji-young, an analyst at Kiwoom Securities. Wall Street ended down on Monday, weighed down by losses in Nvidia and other chipmakers after top executives in US artificial intelligence companies raised safety concerns and called for a slowdown in the development of AI. South Korean chipmaker Samsung Electronics rose 0. 70% on Tuesday and peer SK Hynix gained 1. 27%. Among other index heavyweights, battery maker LG Energy Solution climbed 2. 28%, while Hyundai Motor and sister automaker Kia Corp were up 0. 40% and down 0. 28%, respectively. Steelmaker POSCO Holdings added 2. 07%, while drugmaker Samsung BioLogics fell 0. 35%. Of the total 911 traded issues, 348 shares advanced, while 506 declined. Foreigners were net sellers of shares worth 544. 1 billion won ($403. 46 million). The won was quoted at 1, 348. 9 per dollar on the onshore settlement platform, 0. 20% lower than its previous close at 1, 346. 2. In money and debt markets, September futures on three-year treasury bonds lost 0. 05 point to 102. 63. The most liquid three-year Korean treasury bond yield rose 3. 0 basis points to 4. 045%, while the benchmark 10-year yield rose 1. 9 basis points to 4. 551%.

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