Samsung, SK Hynix Lift Kospi as U.S. Futures Signal Weak Open

Samsung Electronics and SK Hynix pushed the Kospi up 1.25% to 7,083.84 by late morning in Seoul, as investors focused on stronger-than-expected earnings tied to artificial intelligence demand for chip makers.

Samsung Electronics rose 1.48% to 274,000 won and SK Hynix climbed 3.65% to 1,848,000 won. State-run Korea Electric Power Co. added 3.82% and refiner SK Innovation gained 1.6%. The Kosdaq index, which tracks smaller tech firms, was up 0.46%. Hyundai Motor and LG Energy Solution were among the decliners. The South Korean won strengthened to 1,338.55 per dollar.

The Kospi extended gains following a more than 4% increase on Monday, its largest single-day rise in months. Market participants cited continued optimism around AI-related demand and improving memory chip earnings. Goldman Sachs strategist Timothy Moe maintains a bullish long-term Kospi target based on expectations for a recovery in memory chip profitability.

Regional performance was uneven. Japan’s Nikkei 225 fell 0.95%, while South Korea’s large-cap tech names outperformed other Asian markets. Chip shares in South Korea showed resilience despite recent exchanges of strikes between Iran and the United States over the weekend.

U.S. index futures signaled a weaker open for Wall Street, with Dow futures down about 308 points, or 0.6%. The 10-year Treasury yield rose to its highest level since November 2023, and the 2-year yield reached a January 2025 high, as investors assessed the risk that persistent inflation could affect Federal Reserve policy.

Brent crude rose about 1.1% to $97.31 a barrel, a six-week high, after the weekend strikes. Higher oil prices added near-term supply concerns and contributed to inflation worries ahead of key U.S. data.

Traders assigned roughly a 60% probability to a quarter-point Federal Reserve rate increase at next week’s meeting. Wholesale inflation data are due Thursday and consumer price figures are scheduled for Friday; both releases are expected to influence Fed policy expectations and global risk sentiment.

Seoul’s market was among the stronger performers in Asia early in the week. Corporate earnings from technology and memory-chip companies, upcoming U.S. inflation reports and developments in the Middle East are scheduled events that could affect market direction.