FX.co ★ South Korean Shares Extend Gains

The benchmark KOSPI climbed more than 1% to around 6,660 on Friday, extending the previous session’s gains as fading expectations of another US rate hike bolstered global risk appetite. US equities rallied overnight after Fed Governor Christopher Waller indicated a preference for keeping rates on hold unless inflation delivers an upside surprise, while the 10-year US Treasury yield eased to 4.77% after touching its highest level since November 2023.

Semiconductor stocks outperformed, with Samsung Electronics advancing more than 1% and SK hynix nearly 3%. Samsung narrowed its HBM market-share gap with SK hynix in the second quarter, reinforcing a positive outlook for Korea’s flagship chip industry. Additional gains were seen in SK Square (2.1%), Samsung Electro-Mechanics (2.4%), Samsung SDI (2.5%), and LG Electronics (1.4%).

However, renewed US plans for targeted semiconductor tariffs tied to companies’ domestic production could cap further upside, with details on tariff levels and potential exemptions still pending.