South Korea’s KOSPI opened 0.76 per cent higher on Monday as investors returned to heavily sold technology and semiconductor shares. The benchmark began trading at 6,306.33 points, up 47.56 points from Friday’s close of 6,258.77, following gains across major US equity markets.
Technology shares support the opening
The positive start reflected renewed demand for South Korea’s large technology exporters after a turbulent period for the country’s equity market. Samsung Electronics and SK Hynix opened higher, benefiting from continued optimism surrounding artificial intelligence infrastructure and demand for advanced memory chips.
SK Hynix remained in positive territory later in the morning, gaining around 0.8 per cent. Samsung Electronics surrendered its early advance and slipped marginally as investors continued to reduce exposure to some of the market’s largest companies.
South Korean technology shares have experienced unusually sharp movements during recent weeks. The KOSPI has fallen from its June peak as leveraged positions were unwound and concerns emerged over whether valuations had risen too quickly during the artificial intelligence investment boom.
Foreign selling limits the advance
The KOSPI’s opening gain narrowed as foreign investors continued to sell large-capitalisation technology shares. By late morning, overseas investors had sold approximately 619.7 billion won worth of equities.
Retail and domestic institutional investors purchased a combined 598.2 billion won, helping prevent a more pronounced reversal. The index consequently remained in positive territory, but its gain had narrowed to approximately 0.4 per cent by 11.20am in Seoul.
The trading pattern suggested that domestic bargain hunters are becoming more willing to buy after the recent correction, while international investors remain selective. South Korea’s market ended lower for a second consecutive session on Friday and recorded another difficult week.
Wall Street provides a stronger lead
Monday’s opening followed gains in the United States after employment data eased concern that the Federal Reserve might raise interest rates as early as September. The Dow Jones Industrial Average gained 0.28 per cent on Friday, while the S&P 500 rose 0.62 per cent to another record. The Nasdaq Composite advanced 1.3 per cent.
The positive performance of US technology companies provided particular support for Seoul-listed semiconductor groups. South Korea’s export-driven market is highly sensitive to changes in global technology spending, US interest rates and demand for memory products.
Currency movement remains important
The dollar traded at approximately 1,414.8 won during the late morning, around 5.3 won below Friday’s closing level. A stronger Korean currency can reduce the cost of imported energy and materials, although it may also affect the value of overseas earnings generated by major exporters.
Investors are now preparing for US inflation figures due on Wednesday. Any unexpected acceleration could revive expectations of tighter monetary policy and place renewed pressure on technology valuations.
Recovery remains vulnerable
The positive opening demonstrated that investors continue to see value in South Korea’s leading semiconductor and industrial companies. However, sustained foreign selling indicates that confidence has not fully recovered.
The market’s immediate direction is likely to depend on whether domestic buyers can maintain their support, whether semiconductor shares stabilise and whether the approaching US inflation report confirms that interest-rate pressures are easing.
Newshub Editorial in Asia – 10 August 2026
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