Seoul's Kospi climbed 1.25% to 7,083.84 by late morning, building on Monday's advance of more than 4% — the index's sharpest single-day move in months. Samsung Electronics rose 1.48% to 274,000 won, while SK Hynix jumped 3.65% to 1,848,000 won. Korea Electric Power Co. added 3.82% and SK Innovation gained 1.6%, though Hyundai Motor and LG Energy Solution slipped.
Chipmakers lead the charge
The rally was powered by memory chip makers, with SK Hynix posting the biggest gain among large caps. The move comes as investors bet on a recovery in chip earnings, a view echoed by Goldman Sachs strategist Timothy Moe, who holds a bullish long-term Kospi target tied to that recovery. Samsung's 1.48% advance added to Monday's strong performance, keeping the index firmly in positive territory.
Won firms, but global headwinds persist
The won firmed to 1,338.55 per dollar, a modest gain that helped sentiment. But the broader regional picture was mixed. Japan's Nikkei 225 fell 0.95%, and Dow futures dropped 308 points, or 0.6%, pointing to a softer open on Wall Street. Oil prices touched six-week highs, with Brent crude up 1.1% to $97.31 a barrel, after Iran and the US exchanged strikes over the weekend. That geopolitical tension is keeping energy costs elevated and adding to inflation worries.
Rate hike bets firm ahead of inflation data
In the bond market, the 10-year Treasury yield climbed to its highest level since November 2023, while the 2-year note touched a January 2025 high. Traders are now pricing in roughly a 60% chance of a quarter-point Fed rate hike at next week's meeting. The focus shifts to Thursday's wholesale price report and Friday's consumer price index, which could cement or upend those expectations.
For now, the Kospi's momentum is intact, but the path forward hinges on whether inflation data gives the Fed room to pause — or forces another hike. The next two days will tell.
