Seoul shares demonstrated resilience on Tuesday, closing higher as a significant rebound in key technology stocks offset persistent investor concerns regarding escalating Middle East tensions and the volatile artificial intelligence (AI) sector. This positive momentum also saw the Korean won strengthen against the US dollar.
Despite an initial dip of 0.56 percent at market open, the benchmark Korea Composite Stock Price Index (KOSPI) successfully reversed its trajectory, climbing 49.9 points, or 0.73 percent, to settle at 6,856.83. This recovery came after the index had earlier touched an intraday low of 6,448.86.
This notable market rebound followed a challenging previous session where the KOSPI experienced a substantial 9 percent plunge, primarily driven by a widespread sell-off in technology equities. Globally, overnight trading saw the Dow Jones Industrial Average register a modest 0.26 percent decline, while the tech-heavy Nasdaq composite significantly dropped by 1.55 percent, highlighting broader tech sector volatility.
Market participants closely monitored evolving geopolitical developments in the Middle East, particularly the latest exchanges between the United States and Iran concerning the strategic Strait of Hormuz. Additionally, investors eagerly awaited crucial US inflation data later in the day, seeking fresh indicators for the future direction of interest rates and broader economic stability, according to market analysts.
Regarding investor activity, institutional investors and foreign buyers significantly bolstered the market, purchasing a net 3.22 trillion won ($2.15 billion) and 952.7 billion won worth of South Korean stocks, respectively. Conversely, retail investors were net sellers, offloading 4.14 trillion won in equities.
The day’s gains were prominently led by technology giants. Market leader Samsung Electronics saw its shares climb 3.34 percent to 263,000 won, while rival chipmaker SK Hynix surged 3.69 percent, reaching 1,913,000 won. Beyond tech, flag carrier Korean Air increased by 2.51 percent to 26,500 won, and shipping powerhouse HMM also saw a gain of 1.07 percent, closing at 19,760 won.
However, not all sectors shared in the market’s positive close. Top automaker Hyundai Motor experienced a decline of 4.39 percent, settling at 424,500 won. Similarly, defense industry leader Hanwha Aerospace fell by 6.84 percent, ending the session at 872,000 won.
