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Asian stocks diverged on Tuesday as South Korea's KOSPI struggled to shake off pressure on semiconductor shares while Japan's Nikkei 225 recovered, leaving the region's two most AI-sensitive markets moving in opposite directions ahead of key US and Japanese rate decisions. The KOSPI fell as much as 0.76% in early Seoul trading before paring most of the decline, extending a difficult stretch after Monday's sharp technology sell-off.
iShares MSCI South Korea ETF (EWY) is up 148% YoY, driven by heavy concentration in Samsung and SK hynix, both benefiting from strong AI memory demand. Nearly half of EWY is exposed to two companies, making the ETF highly sensitive to the memory cycle and AI infrastructure spending trends. I rate EWY a Hold, as further upside depends on continued tight HBM supply and robust Korean exports, but risk/reward is less compelling after the rally.
South Korea's KOSPI and Japan's Nikkei 225 led a broad Asian selloff on Friday as oil surged above $108 a barrel and US bond yields moved dangerously close to 5%, reviving concerns that inflation could force central banks to tighten further. The KOSPI dropped more than 2.5%, extending Thursday's weakness, while the Nikkei 225 tumbled about 2.8%.
South Korean stocks fell sharply on Thursday as Brent crude held above $100 a barrel, pushing the KOSPI back below the 7,000 mark just a day after it reclaimed the level for the first time in more than a month. The benchmark was down 1.28% at 6,961.23 by late morning in Seoul.
South Korea's KOSPI outperformed Asian markets on Wednesday while Japan's Nikkei 225 recovered from the previous session's selloff, as renewed strength in semiconductor and AI-related shares offset concerns over oil approaching $100 a barrel. The KOSPI rose 1.67% to 7,070.94 by late morning, reclaiming the 7,000 mark as Samsung Electronics gained 1.48% and SK Hynix jumped 4.85%.
South Korea's demand for power in the coming years is set to surge on plans by chipmakers Samsung Electronics and SK Hynix to expand production and the building of new AI data centres, according to the country's energy minister.
South Korea's KOSPI surged about 3% on Monday, leading gains across Asia as investors piled back into semiconductor stocks on renewed optimism over artificial intelligence demand. The benchmark opened 3.34% higher at 6,910.78 and was up 2.97% at 6,886.09 by late morning in Seoul.
South Korea and the United States are discussing semiconductor investments in the U.S. as part of broader bilateral talks, a Seoul official told reporters on Friday.