South Korean shares start week higher as chip makers rise

South Korean shares opened the week on a positive note on Monday, driven by chipmaker stocks, following a brief dip in Wall Street's record-setting rally. The KOSPI index climbed 49.97 points, or 0.80%, to 6,308.74 as of 0158 GMT, marking an end to a seven-week decline streak. US stocks had rallied on Friday, hitting a record high and ending a strong week of gains for major indexes.

This was triggered by unexpected US job data, which showed a decline in employment and reduced the likelihood of the Federal Reserve raising interest rates during its September meeting. Analyst Han Ji-young from Kiwoom Securities stated that foreign investors would likely take advantage of earnings releases from semiconductor and AI-related companies abroad, potentially easing concerns over a potential slowdown in AI and memory chip demand.

Among the top KOSPI index components, Samsung Electronics and SK Hynix, both chipmakers, saw gains of 0.43% and 1.62%, respectively. Battery manufacturer LG Energy Solution ended flat, while Hyundai Motor and Kia Corporation, both automobile manufacturers, posted gains of 1.77% and 0.59%, respectively. POSCO Holdings, a steel producer, remained unchanged, while Samsung BioLogics, a pharmaceutical company, rose by 0.03%.

Of the 910 listed stocks, 630 shares saw an increase, while 248 declined. Foreign investors were net sellers of shares worth 526.4 billion won ($371.75 million). The South Korean won was trading at 1,414.7 per dollar on the onshore settlement platform, a 0.37% decrease from the previous close of 1,409.5. In money and debt markets, futures on three-year treasury bonds declined 0.04 point to 103.35.

The yield on the most liquid three-year Korean treasury bond remained steady at 3.751%, while the 10-year bond yield was flat at 4.198%.