KOSPI rises slightly on strong semiconductor exports

KOSPI and Kosdaq are displayed in the dealing room of Hana Bank in Seoul, Tuesday. The benchmark KOSPI closed at 6,345.53, up 0.73 percent from the previous session, while the secondary Kosdaq closed at 857.84, up 0.39 percent. Yonhap

KOSPI closed higher Tuesday as strong early-August export data outweighed lingering concerns over AI investment and led gains in major semiconductor shares.

The benchmark KOSPI closed at 6,345.53, up 0.73 percent from the previous session. The index opened 0.63 percent lower but reversed course as large-cap semiconductor stocks recovered after taking a breather in recent sessions.

Foreign and institutional investors purchased a net 44.6 billion ($31.45 million) and 31.9 billion won worth of shares, respectively. Retail investors sold a net 72.4 billion won.

SK hynix rose 0.35 percent to close at 1,425,000 won, while Samsung Electronics gained 4.13 percent to finish at 239,500 won.

Korea's exports totaled $21.3 billion from Aug. 1 to 10, up 45.3 percent from a year earlier. Semiconductor exports in particular surged 155.4 percent year-on-year to $10 billion, driving the overall increase. DRAM export prices continued to rise, reinforcing expectations for strong earnings momentum in the semiconductor sector.

Still, upbeat semiconductor data was tempered by lingering concerns over the sustainability of AI-related investment.

Nvidia, together with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, launched a $500 billion financing platform dedicated to AI computing. While the initiative is aimed at mobilizing the massive amounts of capital needed to build out AI infrastructure, it has also renewed concerns over "circular financing" within the AI ecosystem.

Tensions between the United States and Iran also persisted, with delays in restoring normal passage through the Strait of Hormuz pushing oil prices higher and adding upward pressure on U.S. Treasury yields.

The Kosdaq rose 0.39 percent to close at 857.84, although its upward momentum moderated after a nearly 7 percent gain in the previous session.

As of Monday, the Kosdaq had risen about 32.5 percent from its July 30 low, compared with a 12.6 percent gain in the KOSPI over the same period.

"The Kosdaq's recent relative strength appears to have been driven largely by a rebound from oversold levels and a catch-up move relative to the KOSPI," said Han Ji-young, an analyst at Kiwoom Securities. "For example, the Kosdaq reached its year-to-date high on April 27, about two months earlier than the KOSPI, which peaked on June 22."

The won-dollar exchange rate closed at 1,416.0 won per dollar, down 2.4 won from the previous session.