SEOUL, February 27 (AJP) - Asian equities diverged Friday as chip-heavy markets in South Korea and Japan retreated following a reassessment of AI earnings momentum, while sentiment improved modestly in China-related markets ahead of next week’s pivotal Two Sessions.
In Seoul, the benchmark KOSPI fell 1.0 percent, or 63.14 points, to close at 6,244.13, after swinging between a high of 6,347.4 and a low of 6,153.9. The pullback followed a near-uninterrupted rally since Feb. 9.
Foreign investors were heavy sellers, offloading 7.12 trillion won worth of shares. Individuals bought 6.31 trillion won and institutions added 545.8 billion won, suggesting the recent rally has been driven largely by domestic liquidity rather than offshore inflows.
Turnover on the KOSPI reached 52.94 trillion won ($36.8 billion), underscoring active repositioning after a year-long bullish run.
Foreign outflows pressured the currency, with the dollar rising 7.20 won to 1,440 won.
Technology heavyweights led declines. Samsung Electronics slipped 0.7 percent to 216,500 won, while SK hynix dropped 3.5 percent to 1,061,000 won.
Although Nvidia posted strong quarterly results, U.S. markets reacted cautiously, with its shares falling sharply overnight. Investors reassessed the sustainability of AI-driven earnings momentum, particularly after disclosures of sharply rising long-term purchase commitments raised questions about demand visibility.
The tech-heavy KOSDAQ edged up 0.4 percent to 1,192.8 after touching an intraday high of 1,201.9, remaining near record levels. On the KOSDAQ, foreigners bought 63.5 billion won and institutions added 444.5 billion won, while individuals were heavy sellers, offloading 470.7 billion won — indicating selective rotation into mid- and small-cap growth names.
Autos provided a notable counterweight. Hyundai Motor surged 10.7 percent to 674,000 won after announcing plans to invest approximately 9 trillion won in the Saemangeum region to build an AI data center, robotics manufacturing facilities and hydrogen infrastructure.
The investment, structured around an AI-centered industrial cluster, reinforced investor optimism toward advanced manufacturing and next-generation mobility themes.
Samsung Biologics rose 0.7 percent to 1,778,000 won, Kia edged down 0.2 percent to 205,500 won, and Doosan Enerbility gained 2.4 percent to 106,300 won.
In Tokyo, the Nikkei 225 edged up 0.05 percent to 58,781.6, while the broader TOPIX advanced 1.4 percent to 3,934.5, reflecting strength in domestic-oriented shares even as semiconductor-linked names retreated.
Tokyo Electron fell 2.9 percent, Advantest slid 4.5 percent and SoftBank declined 2.6 percent, mirroring global technology weakness. In contrast, Toyota gained 1.3 percent.
Tokyo’s February core consumer price index, excluding fresh food, rose 1.8 percent year-on-year — slightly above expectations but still below the Bank of Japan’s 2 percent target. The “core-core” measure, excluding both fresh food and energy, accelerated to 2.5 percent, reinforcing the view that policy normalization will remain gradual and data-dependent.
The yen traded around 156 per dollar.
China’s Shanghai Composite added 0.4 percent to 4,162.9, while Hong Kong’s Hang Seng Index gained 1.0 percent to 26,647.9, outperforming regional peers despite lingering geopolitical uncertainty.
Markets also monitored developments after the United States and Iran concluded a third round of nuclear talks without a breakthrough, though both sides signaled that technical discussions would continue.
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