KOSPI Reclaims 6,900 Points in Three-Day Rally as Kioxia Jumps 5%, SK Hynix and Samsung Electronics Gain

TradingKey - Japanese and South Korean Stock Markets Diverge at Close! KOSPI Stands Above 6,900 Points, Stronger Yen Weighs Nikkei Down to Close Lower, Kioxia Surges 5%.

During the Asian trading session on August 27, Japanese and South Korean stock markets closed with mixed and volatile performances. Japanese stocks opened higher but moved lower to close slightly in negative territory, while South Korean stocks also opened higher before dropping sharply in morning trading. However, South Korean equities regained strength in the afternoon, ultimately staging a robust rebound led by semiconductor heavyweights to close higher.

The KOSPI Index rose 1.53%, holding above the 6,900 mark to close at 6,912.37 points, marking a three-day winning streak. Both major heavyweights advanced, but SK Hynix showed stronger performance, gaining 1.9% to reclaim the 1.7 million mark and closing at 1,720,000 KRW; Samsung Electronics rose 1.34% to close at 265,000 KRW.KOSPI Index chart, Source: TradingView

The Nikkei 225 Index intraday jumped to as high as 66,954.69 points, but subsequently trended lower due to profit-taking pressure and weakness in some key heavyweights, ultimately closing slightly down 0.20% at 66,131.76 points. However, Kioxia surged 5% to close at 52,500 yen, while SoftBank rose 0.72% to finish at 5,200 yen.

In morning trading, driven by overnight gains in US tech stocks and Nvidia's impressive earnings report, semiconductor-related supply chain stocks rallied, with share prices of Samsung Electronics, Kioxia, and SK Hynix climbing. However, foreign buying slowed in the afternoon, and wait-and-see sentiment emerged near recent highs. Additionally, rising market expectations of further rate hikes by the Bank of Japan (BOJ) led to a stronger yen against the US dollar, dampening short-term earnings expectations for major exporters such as Toyota and dragging the Nikkei 225 Index down to close lower.