South Korean shares set to snap 7-week losing streak on AI optimism

Business Recorder reported that South Korean shares were poised to break a seven-week losing run on Friday, lifted by chipmakers buoyed by optimism around artificial intelligence. The tech-heavy benchmark KOSPI climbed 0.82 per cent to 6,868.89 by 0132 GMT, after rising as much as 2.9 per cent earlier in the session. Gains were trimmed amid caution before the Monday public holiday.

The index has now logged a fifth consecutive day of gains, adding 9.4 per cent in that span, having previously dropped close to 31 per cent across seven weeks. Market volatility has eased, with the volatility index at 56 on Friday, against an all-time peak of 98 recorded in late June. International investors put 780.2 billion won, roughly $550.81 million, into local shares on a net basis.

SK Hynix gained 3.01 per cent and Hyundai Motor rose 5.73 per cent, while Samsung Electronics dipped 0.37 per cent. The rally followed a record-high close for the S&P 500 on Thursday, helped by technology shares and softer producer price figures that reinforced expectations the Federal Reserve will hold off on rate hikes at its September meeting.