Japan and South Korea Stocks Close Mixed; Kospi Rebounds 1.75%, SoftBank Drops 2%

TradingKey - On October 19, Japanese and South Korean stock markets diverged. South Korean stocks rebounded following previous sharp declines, while Japanese stocks continued to weaken. The Korea Composite Stock Price Index (KOSPI) closed up 1.75% at 5,767.01 points, while Japan's Nikkei 225 Index closed down 0.62% at 64,916.70 points.

Source: TradingView

South Korean semiconductor leaders rebounded alongside the broader market. Samsung Electronics rose 1.16% to 218,000 won (about $164); SK Hynix gained 0.39% to 1.277 million won. In the Japanese market, Kioxia climbed 1.68% to 13,600 yen (about $86), while SoftBank Group fell 2.00% to 4,845 yen.

Prior sharp volatility in South Korean stocks has significantly impacted the holdings of large institutional investors. According to financial data provider FnGuide, as of October 15, the total valuation of equity holdings of 5% or more held by South Korea's National Pension Service (NPS) across 287 listed companies fell from 515.93 trillion won at the end of June to 333.53 trillion won, shrinking by about 182.4 trillion won, or approximately $137 billion.

NPS is one of South Korea's largest pension funds, with assets under management reaching 1,866 trillion won (about $1.35 trillion) as of the end of June, making it the world's third-largest pension fund. Large South Korean tech stocks such as Samsung Electronics and SK Hynix were previously major drivers of market gains, but recent sharp stock price pullbacks have significantly reduced the value of institutional holdings.