South Korea’s KOSPI struggled to hold an early AI-driven surge on Wednesday, highlighting how quickly profit-taking is emerging around the 7,000 level even as foreign investors return to Seoul’s semiconductor heavyweights.
The benchmark opened 1.94% higher at 7,153.99 but had pared the gain to just 0.08% at 7,023.87 by 11:20 am in Seoul.
Samsung Electronics remained 1.9% higher, while SK Hynix was up only 0.1% after both climbed more than 2% shortly after the open. The won strengthened to about 1,352.6 per dollar.
KOSPI chip rally runs into profit-taking
The initial jump followed another record close for the Nasdaq Composite as enthusiasm around consumer AI applications continued to support semiconductor and data-centre stocks.
Samsung has now risen for four consecutive sessions, while SK Hynix briefly traded above 1.9 million won on Wednesday before giving back most of its advance.
Earlier in the session, foreign investors had bought about 140 billion won of KOSPI shares and institutions roughly 700 billion won, while retail investors sold around 1 trillion won.
That flow reversal matters after foreigners spent much of September reducing exposure to Korean equities.
Daishin Securities analyst Lee Kyoung-min told Seoul Economic Daily that an extension of the US-China trade truce, combined with lower tariffs and unchanged semiconductor controls, could give the KOSPI enough support to challenge the upper end of its recent range around 7,200 after the holiday break.
Holding 7,000 is becoming the more important test
Wednesday’s fading rally also mirrors Tuesday, when the KOSPI opened more than 2% higher but closed only 0.15% up at 7,017.91.
That repeated pattern suggests investors are still willing to sell into strength even as the broader chip outlook improves.
Kiwoom Securities analyst Han Ji-young told Seoul Economic Daily that resistance around 7,000 remains significant, although the index’s ability to hold the level suggests selling pressure at the top of the range is gradually weakening.
Lower oil is helping. Brent hovered around $99 a barrel as Saudi Arabia restored parts of its East-West pipeline and investors watched for progress in US-Iran diplomacy.
Cheaper crude is particularly supportive for energy-importing South Korea because it eases inflation and currency pressure.
Japan stays shut as the rest of Asia turns mixed
Japan’s cash market remained closed on Wednesday for the Autumnal Equinox holiday, with Tokyo set to reopen on Thursday.
Osaka derivatives trading continued during the holiday period, while Nikkei futures slipped about 0.5% in the latest Asian session.
Elsewhere, Taiwan remained supported by semiconductor demand, with a major blue-chip gauge up about 0.8%.
Mainland China and Hong Kong moved the other way as investors turned cautious before Thursday’s meeting between Donald Trump and Xi Jinping: the Shanghai Composite fell roughly 0.4%, the CSI 300 lost 0.5% and the Hang Seng dropped about 0.9%.
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