KOSPI edges higher as battery, auto gains offset chip losses

Korean stocks rebounded to finish modestly higher on Monday, as bargain hunting in secondary battery and auto sectors helped offset losses in the semiconductor industry. The KOSPI index closed at 5,768.01, marking a 1.76 percent increase. Following a sharp drop that saw the index slip more than 3 percent upon opening, investors sought to regain ground.

However, concerns surrounding AI infrastructure investments dampened enthusiasm for gains. Foreign and retail investors sold a combined 39.0 billion won and 1.09 trillion won, respectively, while institutional investors were net buyers of 574.7 billion won. Samsung Electronics saw a 1.16 percent gain, closing at 218,000 won, while SK hynix posted a 0.39 percent rise, finishing at 1,277,000 won.

This rally occurred despite the sell-off of AI-related stocks on Wall Street on Friday, sparked by renewed credit concerns over CoreWeave. Nevertheless, bargain hunters redirected their attention to other industries, with secondary battery stocks experiencing significant gains. This shift was supported by reports suggesting Chinese energy storage system companies were pulling out of the U.S. market.