South Korean Stocks Rebound on Chip Exports, US Inflation Data

SEOUL, June 11 (Yonhap) -- South Korean stocks ended higher Thursday, rebounding after a sharp fall earlier in the day, as major semiconductor shares gained ground after export data proved the sector's robust performance, while uncertainties over the U.S.-Iran war remained in place.

After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) added 33.13 points, or 0.43 percent, to close at 7,763.95. The index had started nearly 3 percent lower.

The secondary KOSDAQ surged 4.76 percent to end at 996.93, with the bourse operator having issued a sidecar for the index at around 1:58 p.m., halting program trading for five minutes.

The KOSPI's trade volume was moderate at 472.6 million shares worth 45.2 trillion won (US$29.5 billion), with winners outnumbering losers 575 to 318.

Retail investors pushed up the main index, purchasing 2.07 trillion won worth of local shares, while foreigners continued their sell-off for the 24th consecutive session, dumping a net 1.47 trillion won. Institutions unloaded 755.4 billion won.

The KOSPI had kicked off weak tracking an overnight tech slide on Wall Street, but turned higher as investors bet on the continued strong performance of the semiconductor sector after government data showed South Korea's chip exports more than tripled from a year earlier in the first 10 days of June to US$11 billion.

The country's overall exports for the period reached a new high of $28.6 billion, up 86 percent on-year.

The U.S. Consumer Price Index for May, key inflation data that drew investors' attention, was softer than expected, also helping soothe the market's risk-off sentiment, Kang Jin-hyuk, an analyst at Shinhan Securities, said.

On Wednesday (local time), the Dow Jones Industrial Average closed 1.87 percent lower, the S&P 500 fell 1.62 percent, and the tech-heavy Nasdaq composite shed 1.98 percent, as investors unloaded tech shares as woes brewed over the high valuation of artificial intelligence (AI) stocks.

AI chip giant Nvidia dipped 3.73 percent, Broadcom slid 5.12 percent, Super Micro Computer tumbled 28 percent, and AMD dropped 4.86 percent.

But uncertainties surrounding the Middle East crisis are still continuing, with the United States launching additional strikes against Iran, Kang added.

In Seoul, market top-cap Samsung Electronics started more than 3 percent lower but ended up only losing 1.16 percent to 299,000 won. Its chipmaking rival SK hynix turned higher, rising 2.59 percent to 2.1 million won.

AI investment firm SK Square jumped 3.8 percent.

Auto, battery and electrical shares were mixed.

Top automaker Hyundai Motor lost 0.83 percent to 597,000 won, and its sister Kia slipped 2.32 percent to 156,000 won, while its auto parts-making affiliate Hyundai Mobis increased 1.05 percent to 576,000 won.

Leading battery maker LG Energy Solution shed 0.26 percent to 384,500 won, while its smaller rival Samsung SDI gained 0.4 percent.

Samsung Electro-Mechanics was flat at 1.8 million won, but HD Hyundai Electric surged 4.77 percent to 1.03 million won.

Shipbuilders also went separate directions, with HD Hyundai Heavy adding 0.78 percent to 646,000 won and Hanwha Ocean dipping 5.17 percent to 104,500 won.

Power plant manufacturer Doosan Enerbility retreated 2.74 percent to 88,600 won, and defense giant Hanwha Aerospace pulled back 1.65 percent to 1.01 million won.

The Korean won was quoted at 1,528.9 won against the U.S. dollar at 3:30 p.m., down 4.7 won from the previous session.