Global Market: South Korean shares rise on chip gains, KOSPI set for third weekly loss

South Korean shares rose on Friday, led by gains in heavyweight chipmakers, although the benchmark index remained on track for its third consecutive weekly decline as elevated bond yields continued to weigh on investor sentiment.

The KOSPI was up 55.78 points, or 0.85%, at 6,635.26 as of 0152 GMT. Despite Friday's advance, the index has fallen 2.1% so far this week.

According to Reuters, the rise in South Korean equities followed a strong performance on Wall Street overnight, where investors scaled back expectations for further US interest-rate increases. Sentiment improved after Federal Reserve Governor Christopher Waller indicated support for keeping the Fed funds target rate unchanged if incoming data showed inflationary pressures were easing.


Chip stocks were among the biggest drivers of the KOSPI's gains. Samsung Electronics rose 1.20%, while SK Hynix advanced 1.94%, tracking gains in their US-listed peers.

However, several other major stocks traded lower. Battery maker LG Energy Solution declined 0.82%, while Hyundai Motor and Kia fell 0.52% and 0.78%, respectively. Steelmaker POSCO Holdings shed 1.17%, and Samsung Biologics dropped 1.42%.

Of the 903 stocks traded, 450 advanced and 399 declined. Foreign investors were net buyers of South Korean shares worth 204.6 billion won ($150.72 million).

In the currency market, the South Korean won was quoted at 1,359.3 per dollar on the onshore settlement platform, weakening 0.23% from its previous close of 1,356.2.

Bond markets remained a key focus for investors amid concerns over elevated yields. September futures on three-year Treasury bonds were unchanged at 103.14.

The yield on the most liquid three-year Korean Treasury bond rose 0.4 basis points to 3.892%, while the benchmark 10-year yield declined 0.7 basis points to 4.356%, Reuters reported.

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