South Korean equities closed modestly higher on Monday, ending a two-session decline as investors scooped up chip-related shares on bargain hunting, buoyed by Wall Street's extended record-setting rally. The Korean won, however, softened against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 40.89 points, or 0.65 percent, to finish at 6,299.66 following choppy trading. The index opened 0.76 percent higher and climbed as much as 2.16 percent in early dealings before gradually paring gains. The market subsequently traded largely sideways under the weight of heavy foreign selling.

Trading volume was moderate, with 629.9 million shares changing hands valued at 29.09 trillion won ($20.51 billion). Gainers widely outnumbered losers, 695 to 183.

Foreign investors offloaded a net 1.48 trillion won in stocks. Institutional and retail investors absorbed much of that supply, purchasing a net 567.4 billion won and 899.8 billion won, respectively. The heavy foreign outflow underscores the persistent role of overseas investors as a driving force in the KOSPI's direction, with their positioning often amplifying index volatility during periods of global uncertainty.

"Large-cap semiconductor stocks came under pressure following reports that Apple is considering adopting memory chips from Chinese chipmaker CXMT, but bargain hunters moved into semiconductor equipment and materials stocks," said Lee Kyung-min, an analyst at Daishin Securities. Samsung Electronics and SK hynix together account for the bulk of the global DRAM market, making any potential shift by Apple — one of the world's largest memory chip buyers — a notable signal for the competitive landscape that has long been dominated by the two Korean firms.

The positive tone in Seoul followed Wall Street's advance on Friday, supported by US employment data that alleviated concerns about further interest rate hikes. The Dow Jones Industrial Average gained 0.28 percent, while the S&P 500 added 0.62 percent to a new all-time high. The tech-heavy Nasdaq Composite Index climbed 1.3 percent.

In Seoul, large-cap stocks ended mixed. Semiconductor leader Samsung Electronics gave up 0.43 percent to close at 230,000 won after opening in positive territory, while rival SK hynix slipped 0.14 percent to 1.42 million won, also paring early gains.

Bucking the downtrend, LG Energy Solution rose 2.08 percent to 367,500 won, and Hyundai Motor, South Korea's largest automaker, climbed 3.16 percent to 408,000 won.

The Korean won was quoted at 1,418.4 against the US dollar at 3:30 p.m., down 2.3 won from the previous session. The won's level near 1,418 reflects its continued sensitivity to global dollar strength and trade dynamics affecting export-driven Asian currencies.

Source: Korea Herald Business (Yonhap)