SEOUL, September 10 (AJP) -- South Korean stocks recovered from steep early losses on Thursday, with the KOSPI holding above 7,000 despite heavy foreign selling and elevated oil prices, while the KOSDAQ turned higher on institutional buying and semiconductor gains.
The benchmark KOSPI fell 0.25 percent or 17.72 points to close at 7,033.92. The index dropped as low as 6,898.45 in morning trading, briefly losing the 6,900 level, before recovering more than 130 points from its intraday low. It reached a session high of 7,072.79.
Foreign investors sold 2.48 trillion won (US$1.85 billion) worth of shares, while institutions bought 433.4 billion won and retail investors purchased 380.2 billion won.
Risk appetite weakened early as international oil prices remained near their highest levels since May amid escalating tensions between the United States and Iran. Brent crude held above $100 a barrel, raising concerns that prolonged disruptions to Middle East energy supplies could add to inflationary pressure.
U.S. Treasury yields also remained elevated, with the benchmark 10-year yield near 4.8 percent after a Treasury bond buyback plan fell short of market expectations. The combination of higher oil prices and bond yields pressured Asian equities broadly.
Samsung Electronics slipped 0.19 percent to 269,000 won and SK hynix edged down 0.16 percent to 1,853,000 won. Both had fallen more than 2 percent during the session before recovering most of their losses.
Foreign selling was concentrated in the two chip heavyweights, while institutional and corporate buying absorbed part of the pressure. Sentiment improved during the session after TSMC reported record August sales, reinforcing expectations that demand linked to artificial intelligence infrastructure remains strong.
SK hynix also remained in focus after JPMorgan maintained an overweight view on the chipmaker, citing the emergence of agentic AI and expectations that rising memory requirements could extend the semiconductor upcycle.
Insurance and energy-related stocks outperformed the broader market.
Hanwha Life gained 4.73 percent and Samsung Life rose 1.98 percent, helping life insurance shares advance 2.2 percent as a group.
Gas utility shares also climbed as renewed Middle East tensions kept energy supply risks in focus. GSE rose 5.9 percent and Daesung Energy gained 4.45 percent. Aerospace and defense shares advanced 1.47 percent amid the renewed geopolitical uncertainty.
Sempio hit the daily upper limit of 30 percent after announcing plans to cancel treasury shares equivalent to nearly 30 percent of its outstanding stock. The company plans to cancel 860,332 shares, or 29.92 percent of shares issued, boosting expectations for improved shareholder value.
Elsewhere, Hyundai Motor edged up 0.26 percent to 389,000 won, while Doosan Enerbility fell 1.96 percent to 89,900 won. Hanwha Ocean declined 2.95 percent and HD Hyundai Heavy Industries dropped 2.2 percent.
The tech-heavy KOSDAQ reversed early losses to close 0.79 percent higher at 836.92.
The index opened lower and fell as far as 813.66 before turning higher in afternoon trading. It reached an intraday high of 839.05.
Institutions drove the rebound, buying 1.35 trillion won worth of shares. Foreign investors sold 1.07 trillion won, while retail investors offloaded 269.9 billion won.
Semiconductor-related stocks were strongest performers as buying spread from large memory makers to equipment and supply-chain companies.
Jusung Engineering surged 7.02 percent to 221,000 won, while SFA Semicon climbed 7.24 percent to 7,110 won as investors continued to position for strong AI and memory-related investment.
Oil-related stocks also rallied sharply as crude prices remained elevated. Heungkuk Petroleum jumped 20.02 percent to 14,510 won, while Joong Ang Enervis gained 9.9 percent as investors bet that prolonged Middle East disruptions would keep energy prices high.
Other active KOSDAQ stocks included Mercury, which surged 14.12 percent to 4,970 won, and TerraView, which climbed 17.87 percent to 3,660 won. JW Shinyak fell 6.34 percent to 3,620 won.
Brent crude traded at around $100.88 a barrel, down 0.34 percent, while West Texas Intermediate stood at around $95.81, down 0.27 percent. Despite the modest pullback, crude remained elevated as attacks linked to the U.S.-Iran conflict continued to threaten regional supply and shipping routes.
The Korean won traded at 1,340.9 won against the U.S. dollar.
Throughout Asia, Japan's Nikkei 225 gained 0.2 percent to 65,270.95, while China's Shanghai Composite fell 0.43 percent to 3,934.40.
AJP Takeaways
- KOSPI fell 0.25 percent to 7,033.92 but recovered more than 130 points from its intraday low as institutional and retail buying cushioned heavy foreign selling.
Foreign investors sold a net 2.48 trillion won on the KOSPI, while institutions and retail investors bought 433.4 billion won and 380.2 billion won, respectively.
Samsung Electronics and SK hynix finished only slightly lower after recovering from steeper intraday losses, as strong TSMC sales and continued AI-memory demand supported chip sentiment.
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