Global Markets: S.Korean shares log best quarter in nearly 30 years on chipmaker rally

Round-up of South Korean financial markets:

South Korean shares logged their best quarter in nearly 30 years on Tuesday on the back of chipmakers' blistering rally.

The benchmark KOSPI ended the ‌quarter up ⁠68%, the biggest ⁠since the fourth quarter of 1998 when the internet was still in its infancy, rising 101% so far this year.

On Tuesday, the index closed up 81.83 points, or 0.97%, at 8,476.48 in a volatile session - falling as much as 2.1% and rising as much as 3.3%.


Chipmaker Samsung Electronics rose 3.41% and peer SK Hynix gained 0.84%, after falling sharply on Monday. For ⁠the quarter, ‌they rose more than 90% and 220%, respectively. ** On Monday, South Korea unveiled a sweeping semiconductor and AI strategy, with President Lee ⁠Jae Myung announcing more than $576 billion in chip investments to bolster global competitiveness and rebalance growth.

Volatility heightened in chipmaker stocks in recent days with investors turning cautious about the durability of the AI-driven chip rally.

"Hopes of improving profits for the semiconductor sector remain valid," said Lee Kyoung-min, an analyst at Daishin Securities.

Among other heavyweights, battery maker LG Energy Solution slid 9.61%, while Hyundai Motor and sister automaker Kia Corp ‌were down 0.40% and down 1.85%, respectively.

Steelmaker POSCO Holdings shed 4.80%, while drugmaker Samsung BioLogics fell 3.94%.

Of the total 917 traded issues, 262 shares advanced, while ⁠623 declined.

Foreigners were net sellers of shares worth 3.8 trillion won ($2.45 billion).

The won was quoted at 1,549.4 per dollar on the onshore settlement platform, 0.41% lower than its previous close at 1,543.0.

In money and debt markets, September futures on three-year treasury bonds gained 0.05 point to 103.27.

The most liquid three-year Korean treasury bond yield fell by 2.1 basis points to 3.718%, while the benchmark 10-year yield fell by 2.3 bps to 4.101%.

($1 = 1,549.0800 won)