South Korean shares erase early gains as chip volatility, AI concerns weigh

SK Hynix

Yesterday 03:51

KOSPI falls, foreigners net sellers
Korean won weakens against dollar
South Korea benchmark bond yield falls

    SEOUL, June 30 (Reuters) - Round-up of South Korean financial markets:


    ** South Korean shares reversed early gains to trade lower on Tuesday, as volatility in heavyweight semiconductor stocks weighed on the broader market, with investors turning cautious about the durability of the AI-driven chip rally.    
  

        ** The benchmark KOSPI .KS11 was down 35.40 points, or 0.38%, at 8,362.96, as of 0217 GMT. Earlier in the session, the index climbed up to 1.4%, before shedding gains to drop as much as 2.1%. 

    ** The KOSPI has fallen 0.2% this month, though it remains up 67% for the quarter and 101% year-to-date.  
  

    ** Shares of chipmaker Samsung Electronics 005930.KS were up 1.55%, easing from a 3% climb earlier in the day. Peer SK Hynix 000660.KS erased early gains to fall 1.03%. 
  

    ** On Monday, South Korea unveiled a sweeping semiconductor and artificial intelligence strategy, with President Lee Jae Myung announcing more than $576 billion in 
    chip investment
    s to bolster global competitiveness and rebalance growth.
  

        ** "It is necessary to brace for volatility in semiconductor stocks capping the benchmark's upside as it is the last trading day of the quarter and the first half," said Han Ji-young, an analyst at Kiwoom Securities.
** Battery maker LG Energy Solution 373220.KS slid 8.74%, while Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 0.60% and 1.78%, respectively.
** Steelmaker POSCO Holdings 005490.KS shed 4.80%, while drugmaker Samsung BioLogics 207940.KS fell 4.56%.
** Of the total 916 traded issues, 252 shares advanced, while 626 declined.
** Foreigners were net sellers of shares worth 2.1 trillion won ($1.36 billion). 
** The won was quoted at 1,549.3 per dollar on the onshore settlement platform KRW=KFTC, 0.41% lower than its previous close at 1,543.0.
** The most liquid three-year Korean treasury bond yield KR3YT=RR fell 1.6 basis points to 3.723%, while the benchmark 10-year yield KR10YT=RR fell 2.4 basis points to 4.100%.

($1 = 1,548.5000 won)

 (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)
 ((jihoon.lee@thomsonreuters.com;))