The main index traded 0.3 percent higher at 6,321 as of around 10:30 a.m., after falling more than 1 percent earlier in the session. It moved between a low of 6,213.78 and a high of 6,327.32.
Retail investors bought 222 billion won (US$157 million) worth of KOSPI-listed shares, as foreign investors added 6.7 billion won. Institutions sold 204.1 billion won.
Chip giant Samsung Electronics reversed early losses to rise 0.4 percent to 231,000 won, but other major technology shares remained weak. Rival SK hynix fell 2.89 percent to 1,379,000 won, Samsung Electro-Mechanics dropped 5.49 percent to 1,204,000 won and SK Square declined 3.37 percent to 917,000 won.
LG Electronics and LS Electric each fell 3.84 percent, as Hanwha Ocean lost 3.28 percent. Hanwha Solutions rose 2.4 percent.
NHN surged 15.9 percent after reporting second-quarter operating profit of 57.9 billion won, up 164 percent from a year earlier, on a 25.3 percent increase in revenue.
Construction and insurance shares were also strong. Kumho Engineering & Construction soared 29.98 percent, as Hyundai Marine & Fire Insurance jumped 8.4 percent and Samsung Fire & Marine Insurance gained 3.7 percent.
The tech-heavy KOSDAQ climbed 1.3 percent, or 10.89 points, to 865.94 after falling as low as 840.45 earlier in the session. Its intraday high stood at 875.16.
Retail investors bought 160.2 billion won worth of KOSDAQ shares and institutions purchased 35.9 billion won, while foreign investors sold 199.4 billion won.
Semiconductor equipment stocks led the rebound. Jusung Engineering surged 14.23 percent, SFA Semicon jumped 12.09 percent and Synopex gained 12.06 percent. YES-T rose 16.36 percent.
Construction and cement-related small caps also rallied, with Namhwa Construction up 26.32 percent and Seosan gaining more than 26 percent. LK Samyang soared 29.93 percent.
On the downside, Bonne fell 8.06 percent, as Seongho Electronics and Woori Technology each lost 4.84 percent.
Both indexes had opened lower as renewed U.S.-Iran tensions raised uncertainty over the reopening of the Strait of Hormuz.
U.S. stocks ended slightly lower overnight. The Dow Jones Industrial Average fell 0.11 percent, the S&P 500 slipped 0.06 percent and the Nasdaq Composite lost 0.32 percent. Nvidia fell 2.86 percent, Micron dropped about 1.8 percent and the Philadelphia Semiconductor Index slid 2.94 percent.
West Texas Intermediate crude jumped 5.1 percent overnight to $82.13 a barrel as the U.S.-Iran impasse clouded prospects for restoring normal traffic through the Strait of Hormuz. The U.S. 10-year Treasury yield also moved back above 4.7 percent.
The Korean won strengthened 0.4 percent to around 1,413.4 won against the dollar.
Japan's stock market was closed in observance of Mountain Day, a national public holiday celebrated annually on Aug. 11 since 2016 to give people an opportunity to connect with nature and appreciate the blessings of mountains. Meanwhile, China's Shanghai Composite fell 0.4 percent to 3,952.1, while Hong Kong's Hang Seng Index edged up 0.14 percent to 25,973.66.
AJP Takeaways:
- South Korean stocks reversed early losses on Aug. 11, with the KOSPI up 0.3 percent at 6,321 and the KOSDAQ rising 1.3 percent to 865.94 as of 10:30 a.m.
- Retail investors led buying in both markets, purchasing 222 billion won ($157 million) of KOSPI shares and 160.2 billion won of KOSDAQ shares, while institutions sold KOSPI stocks and foreign investors sold KOSDAQ shares.
- Large-cap chip stocks remained weak, with SK hynix down 2.89 percent and Samsung Electro-Mechanics down 5.49 percent, while semiconductor equipment and construction shares posted sharp gains.
- U.S.-Iran tensions and uncertainty over the Strait of Hormuz kept pressure on markets after WTI crude jumped 5.1 percent to $82.13 a barrel and the U.S. 10-year Treasury yield moved back above 4.7 percent.
- The Korean won strengthened 0.4 percent to around 1,413.4 per dollar, while Japan was closed for the Mountain Day holiday and Chinese shares traded lower.
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