Global Market: South Korean stocks fluctuate as AI spending concerns weigh on chipmakers

South Korean shares swung between gains and losses in early trade on Friday as investors weighed the latest round of U.S. corporate earnings, while the won traded little changed against the dollar, Reuters reported.

The benchmark KOSPI was up 11.09 points, or 0.18%, at 6,307.47 as of 0025 GMT. The index had climbed as much as 1.9% earlier in the session before briefly slipping into negative territory, falling as much as 0.5%.

Despite recovering from intraday lows, the KOSPI remained down 4.2% for the week and was on course for a third straight weekly decline.


The cautious trading followed a subdued session on Wall Street overnight, where the Nasdaq edged lower amid mixed corporate earnings and broader market concerns. Reuters reported that South Korean equities have also come under pressure from the unwinding of leveraged positions in semiconductor stocks, as investors reassess whether major data centre operators can sustain heavy spending on artificial intelligence.

Among heavyweight stocks, Samsung Electronics gained 1.74%, while SK Hynix slipped 0.54%. Battery maker LG Energy Solution advanced 2.03%.

Automakers were under pressure, with Hyundai Motor falling 2.13% and affiliate Kia Corp declining 0.97%. Steelmaker POSCO Holdings rose 1.72%, while Samsung BioLogics edged down 0.13%.

Market breadth remained positive, with 478 stocks advancing against 360 declines out of 894 issues traded.

Foreign investors were net buyers of shares worth 287.8 billion won (about $202.3 million), Reuters reported.

In the currency market, the South Korean won was quoted at 1,423.8 per dollar on the onshore settlement platform, marginally stronger than its previous close of 1,424.1. Offshore, the currency traded at 1,422.7 per dollar, while the one-month non-deliverable forward contract was quoted at 1,421.8.

So far this year, the KOSPI has gained 49.67%, while the won has appreciated 1.1% against the U.S. dollar.

In the bond market, September futures on three-year treasury bonds slipped 0.02 points to 103.37. The yield on the most liquid three-year Korean treasury bond was unchanged at 3.747%, while the benchmark 10-year yield held steady at 4.184%.

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