SEOUL, March 27 (AJP) - Asian equities ended the week on a subdued note as the Iran conflict stretched into a month-long standoff, while fresh concerns over AI-driven memory demand added another layer of uncertainty for investors.
Brent crude rose 1.5 percent to $109.5 per barrel and West Texas Intermediate gained 0.9 percent to $95.3, keeping pressure on energy-importing economies already strained by prolonged geopolitical risks.
Regional markets moved in mixed directions. Japan’s Nikkei 225 fell 0.4 percent to 53,373.1, while China’s Shanghai Composite rose 0.6 percent to 3,913.8. Hong Kong’s Hang Seng Index gained 0.7 percent to 25,023.6, supported by improving economic signals from China and expectations of further policy support.
Global risk sentiment remained fragile. The Philadelphia Semiconductor Index tumbled 4.8 percent, while the VIX jumped 8.3 percent to 27.4, underscoring elevated volatility.
In Seoul, the benchmark KOSPI slipped 0.4 percent to close at 5,438.9, recovering from early losses that briefly pushed the index toward the 5,200 level.
Retail investors helped cushion the decline despite heavy foreign outflows. Foreign investors sold 3.88 trillion won ($2.58 billion), extending their selling streak, while institutions and retail investors bought 777.7 billion won and 2.71 trillion won, respectively.
Foreigners have offloaded nearly 30 trillion won so far this month, including more than 10 trillion won this week alone, highlighting persistent external pressure on Korean assets.
Chipmakers remained under strain. Samsung Electronics edged down 0.2 percent to 179,700 won, while SK hynix fell 1.2 percent to 922,000 won, as concerns grew over emerging AI compression technologies that could dampen future memory demand.
The latest trigger came from Google’s unveiling of “TurboQuant,” a data compression algorithm designed to significantly reduce the working memory requirements of AI systems without sacrificing performance. If widely adopted, the technology could challenge the growth trajectory of high-bandwidth memory chips that have driven recent earnings momentum for Korean chipmakers.
By contrast, autos and battery shares showed resilience. Hyundai Motor rose 1 percent to 495,000 won, while LG Energy Solution gained 2.6 percent to 394,500 won on expectations of expanding demand beyond electric vehicles, particularly in energy storage systems.
Over the week, the KOSPI swung sharply, rising from 5,405.75 on March 23 to 5,642.21 on March 25 before retreating to 5,460.46 on March 26 and ending at 5,438.9 on Friday.
The tech-heavy KOSDAQ rose 0.4 percent to 1,141.5, rebounding from earlier losses. Foreign investors sold 234 billion won, while institutions and retail investors bought 50.7 billion won and 170.0 billion won, respectively.
Biotech stocks led gains, though Samchundang Pharm fell more than 4 percent after recent rallies, closing at 1,111,000 won.
The Korean won weakened, with the dollar closing at 1,505.3 won after briefly breaching the 1,510 level intraday, reflecting sustained external pressures tied to oil prices and capital outflows.
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