SEOUL, May 18 (AJP) - South Korean stocks ended higher on Monday as heavyweight semiconductor shares helped the benchmark index recover from a sharp early plunge. The market stood out against a broader selloff across Asia triggered by rising global bond yields, renewed oil price pressures and weakness in United States technology shares.
The KOSPI rose 0.6 percent to close at 7,516.04, rebounding from an intraday low of 7,142.71 to reach a high of 7,636.20. The recovery occurred despite heavy foreign selling, as overseas investors offloaded 3.65 trillion won, or 2.43 billion dollars, worth of shares. Retail and institutional investors absorbed the selloff, purchasing 2.21 trillion won and 1.39 trillion won respectively.
Samsung Electronics drove much of the recovery, climbing 3.9 percent to close at 281,000 won. The gains came even as labor tensions remained in focus ahead of a planned strike by company unions on May 21.
A local court partially accepted an injunction request from Samsung against illegal strike activity, recognizing the need to maintain safety operations and wafer protection work at semiconductor facilities. The unions said they would proceed with the planned action, arguing the court ruling did not block the strike itself.
Business groups and shareholder organizations stepped up pressure on the union to withdraw the plan, warning of potential damage to the core semiconductor industry of South Korea. Workers are demanding the removal of a performance bonus cap set at 50 percent of their annual salary and want 15 percent of operating profit allocated to a uniform bonus pool.
SK hynix gained 1.2 percent to 1,840,000 won, supported by continued optimism over demand for high-bandwidth memory. The advance came despite concerns that rising global bond yields could pressure valuations for artificial intelligence-related technology companies.
Other large-cap shares faced steep declines. Hyundai Mobis plunged 9.2 percent to 571,000 won, tracking weakness across Hyundai Motor Group shares after the sharp morning drop triggered a sell-side sidecar for the second consecutive session.
LG Electronics dropped 9.8 percent to 217,000 won, while LS Electric fell 2.1 percent to 253,500 won. Doosan Robotics slid 7.5 percent to 117,900 won, while cable manufacturer Daehan Electric Wire fell 3.2 percent to 58,100 won and Gaon Cable jumped 12.3 percent to 380,000 won.
The technology-heavy KOSDAQ failed to match the broader market rebound, falling 1.7 percent to close at 1,111.09. The junior index moved between a high of 1,122.57 and a low of 1,071.66, with institutions selling 255.1 billion won and retail investors offloading 7.7 billion won, while foreigners bought 237.2 billion won.
Jusung Engineering surged by the daily limit of 30 percent to 182,200 won on the KOSDAQ. The company announced it had shipped the world's first ALG-based transistor full integration manufacturing equipment to a global chipmaker, adding the technology could expand to display and solar applications.
Mirae Asset Venture Investment jumped 22.8 percent to 67,400 won, boosted by expectations that SpaceX could accelerate its initial public offering timeline. Mirae Asset Group has reportedly invested about 400 billion won in the aerospace company through funds since 2022.
Jeju Semiconductor rose 12.5 percent to 92,600 won after reporting first-quarter revenue surged 273 percent from a year earlier to 180.5 billion won. The company said operating profit jumped 1,713 percent to 67.1 billion won, driven by higher DRAM prices and stronger demand for memory chips used in mobile and automotive applications.
Sphere Corporation advanced 14.6 percent to 48,150 won after reporting first-quarter consolidated revenue grew 106 percent year-on-year to 45 billion won. The company attributed nearly all of its revenue to an aerospace special alloy supply business supported by growth in the global space industry.
Hanmi Semiconductor plunged 14.1 percent to 317,000 won following an earnings shock. The company posted revenue of 50.9 billion won and operating profit of 8.5 billion won, down 65.5 percent and 87.9 percent respectively, citing a decline in Asian sales and a gap in TC bonder orders.
Regional markets ended broadly lower as investors reacted to rising bond yields, higher oil prices and renewed weakness in United States technology shares. Japan's Nikkei 225 fell 0.9 percent to 60,877.5, China's Shanghai Composite declined 0.5 percent to 4,116.9 and Hong Kong's Hang Seng Index lost 1.5 percent to 25,566.6.
Oil prices extended gains as stalled talks between the United States and Iran and continued disruptions around the Strait of Hormuz kept supply concerns elevated. Brent crude rose 2.3 percent to 107.80 dollars a barrel, while West Texas Intermediate climbed 1.9 percent to 111.28 dollars.
The VIX volatility index rose 6.8 percent to 18.4, and the Philadelphia Semiconductor Index dropped 4 percent to 11,588.5.
The South Korean won weakened slightly, trading at 1,500.3 won against the dollar, down 2.3 won, or 0.1 percent, from the previous session.
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