FX.co ★ South Korean Shares Pause After Rally

On Friday, the benchmark KOSPI index slipped by 0.5%, settling around 4,525 as investors opted to secure profits on semiconductor stocks. This decline marked a retreat from recent record highs, with major semiconductor players like Samsung Electronics and SK hynix experiencing losses of over 1% and 2.5%, respectively. Global investors shifted away from technology shares in anticipation of crucial U.S. economic data. The sentiment echoed the Nasdaq's overnight downturn and marginally increased U.S. Treasury yields, diminishing the attractiveness of growth and AI-related stocks. Furthermore, market participants adopted a cautious stance ahead of the U.S. payrolls report and the possibility of a Supreme Court verdict on tariffs, which dampened risk appetite and limited buying on dips. Notably, losses were somewhat offset by advances in defense and automotive stocks, with Hanwha Aerospace climbing by 6.8% and Korea Aerospace Industries rising 3.5%, driven by ongoing geopolitical tensions that continued to bolster demand for aerospace and defense shares. Despite this intraday decline, the KOSPI is poised to achieve a third consecutive week of gains.