FX.co ★ South Korean Shares Lack Direction

On Friday, the KOSPI benchmark index opened relatively unchanged at approximately 2,620 points. However, it poised for its largest weekly gain in three weeks, marking a fifth consecutive weekly increase. Market participants remained attentive to progress in the ongoing tariff discussions between the United States and Korea. Concurrently, they evaluated data indicating a third consecutive monthly decline in import prices, which bolstered expectations for further monetary easing by the Bank of Korea. The finance ministry, however, cautioned that the economy is experiencing growing downward pressure due to weak export performance and sluggish consumer spending amidst persistent trade uncertainties.

In corporate news, SK hynix, a major player in the semiconductor industry, saw its shares rise by 2.7%. The company reported that U.S. sales accounted for 72% of its revenue in the first quarter, a significant increase from 50% in the previous year, driven by strong demand for chips related to artificial intelligence. Furthermore, SK hynix’s announcement of its fully booked high-bandwidth memory (HBM) production for the year further bolstered confidence in the semiconductor sector. The day also saw notable gains in defense, shipbuilding, and automotive stocks, while shares related to batteries and battery technology registered losses.