The Kospi and Kosdaq indexes are displayed on a board at the Hana Bank dealing room in Jung-gu, Seoul, on Tuesday. [Yonhap]
The Kospi and Kosdaq indexes are displayed on a board at the Hana Bank dealing room in Jung-gu, Seoul, on Tuesday. [Yonhap]

South Korean stocks shook off early weakness Tuesday to close higher for a second consecutive session, with both the Kospi and Kosdaq finishing in positive territory.

A record-breaking early-August export reading — driven by a 155% surge in semiconductor shipments — sparked a rebound in large-cap chip stocks including Samsung Electronics. However, lingering uncertainty over whether the Strait of Hormuz would reopen kept the gains in check.

The Kospi ended the day up 45.87 points, or 0.73 percent, at 6,345.53. The index opened down 59.60 points, or 0.95 percent, at 6,240.06 before turning positive, though the advance remained modest.

Trading flows were evenly matched between buyers and sellers. Foreign investors posted net purchases of 45 billion won ($31.8 million) and institutional investors added 30.5 billion won, while retail investors recorded net selling of 71 billion won — all figures well below their typical daily levels.

Total Kospi trading volume reached 21.94 trillion won, about 2 trillion won more than on Monday, yet the near-perfect balance between buying and selling kept net positions on both sides relatively small.

The KOSPI 200 Volatility Index, or VKOSPI — South Korea's equivalent of the fear gauge — extended its decline from Monday. The index fell 11 percent Tuesday to close around the 61 level, retreating to where it stood in early May. On Monday it had dropped 7.99 percent, slipping below 70 for the first time since late May.

Much of Tuesday's gain was attributed to a strong early-morning export report. Data released by the Korea Customs Service shortly after the opening bell showed that exports from Aug. 1 to 10 reached $21.3 billion on a customs-clearance basis — a preliminary figure — up 45.3 percent from the same period last year. That surpassed the previous record for early August, set in 2022, when shipments totaled $15.6 billion.

Semiconductor exports were particularly strong, jumping 155 percent to $10 billion and lifting the sector's share of total exports by as much as 20 percentage points.

Samsung Electronics and SK Hynix, which had both fallen immediately after the open, reversed course to gain 4.13 percent and 0.35 percent, respectively. SK Hynix had been down about 3 percent at one point in early trading.

Still, uncertainty surrounding the Middle East situation continued to cap the upside. Overnight reports from foreign media said Iran was refusing direct talks with the United States, insisting on several preconditions — leaving the question of whether the Strait of Hormuz would reopen unresolved.

Among large-cap Kospi stocks, SK Square fell 0.42 percent, Samsung Electro-Mechanics dropped 0.94 percent, LG Energy Solution lost 3.54 percent and Hyundai Motor declined 1.23 percent. Samsung Biologics bucked the trend, rising 2.55 percent.

The Kosdaq also closed higher, adding 3.37 points, or 0.39 percent, to finish at 857.84. The index opened down 5.88 points, or 0.69 percent, at 848.59 and swung between a loss of 1.64 percent and a gain of 2.42 percent before edging into positive territory just before the close. Retail investors were the sole net buyers on the Kosdaq, snapping up 435.1 billion won worth of shares, while foreign and institutional investors sold a net 360 billion won and 96.6 billion won, respectively.

Alteogen, the Kosdaq's top stock by market cap, fell 5.89 percent after surging on Monday. Second- and third-ranked Ecopro and Ecopro BM each dropped 3 to 4 percent. On the upside, semiconductor materials, parts and equipment stocks rallied — Jusung Engineering climbed 12 percent, Wonik IPS gained 6 percent and Jeju Semiconductor rose more than 3 percent.

The won continued to strengthen against the dollar. As of 3:30 p.m. in the Seoul foreign exchange market, the won-dollar rate stood at 1,416.0 won, down 2.4 won from the previous session.


th5@heraldcorp.com