– South Korean stocks erased their morning losses to finish higher, as optimism over progress in Samsung Electronics Co.’s labor talks helped offset the hit to sentiment from rising bond yields.
Most Read from Bloomberg The Kospi edged up 0.3% on Monday, rebounding from an earlier tumble of as much as 4.7% after the opening bell that briefly pushed the index into correction territory
The Korea Exchange halted program selling after a sharp slump in futures. The latest swings highlight once again the fragility of a market relying on the advance of heavyweights Samsung Electronics and SK Hynix Inc. The benchmark climbed as Samsung shares rallied, buoyed by the union signaling a willingness to negotiate and as a local court granted the company’s request to curtail a potential strike. “What stood out was the speed of the bounce,” said Jung In Yun, chief executive officer at Fibonacci Asset Management Global in Singapore. “To me, that suggests investors still see Samsung as a core long-term AI and semiconductor proxy for Korea.” Read: Samsung Shares Jump After High-Stakes Labor Talks Resume (1) Meanwhile, stocks fell in most other Asian markets on Monday as rising global bond yields on inflation fears sapped risk demand.
Global investors continued to offload Korean equities after withdrawing a record $13 billion last week, taking profit following a sharp surge in the two memory makers. Net foreign outflows on Kospi shares reached 3.7 trillion won ($2.5 billion) on Monday, while retail investors and local institutions increased holdings. Focus will continue on Samsung’s negotiation with its largest labor union to avert a strike that the nation’s prime minister warned could wreak havoc on the economy.