South Korean Stock Market Bounces Back After Tech Drop

South Korean shares rose one percent on Monday as chipmakers bounced back from a sharp drop last week, while investors brushed off worries about Nvidia after getting assurances on supply. The benchmark KOSPI went up by 1.57 percent, adding 79.58 points to reach 5,139.27 by 0146 GMT. This recovery comes just a day after the index dropped six percent on Friday to hit its lowest close since March 31. A senior South Korean official stated that current issues facing Nvidia will not hurt the country's contracted supply of graphics processing units from the US chipmaker. Meanwhile, Wall Street recovered some ground on Friday following a massive global selloff driven by fears of tighter US regulation on artificial intelligence.

Market Movers

Samsung Electronics and SK Hynix saw their shares bounce back from heavy losses to climb 2.9 percent and 4.7 percent, respectively. Other heavyweights saw mixed results as battery maker LG Energy Solution dropped 2.37 percent and automakers Hyundai Motor and Kia Corp fell 0.89 percent and 2.59 percent. Steelmaker POSCO Holdings shed 0.19 percent, while drugmaker Samsung BioLogics gained 2.37 percent. Out of 910 traded issues, 408 shares advanced and 445 declined, with foreign investors selling shares worth 512.1 billion won.

Currency and Bonds

The South Korean won traded at 1,360.6 against the dollar on the onshore platform, marking a 0.18 percent rise from its previous close of 1,363.0. In the bond market, the three-year Korean treasury bond yield went up by 2.4 basis points to 3.646 percent, and the 10-year yield rose 2.5 basis points to 3.877 percent.

Context

Semiconductors hold a massive share of the South Korean stock market, making local equities heavily sensitive to global tech trends and artificial intelligence demand. Market analysts suggest that stable economic news and steady tech earnings help calm investor nerves after sudden global selloffs.