Kospi edges up as chip buybacks counter widespread selling

On Tuesday, South Korea's Kospi finished at 6,835.8 points, rising 0.23%, as buyback-supported gains in Samsung Electronics and SK Hynix offset net selling by foreign, institutional and retail investors.

The benchmark rose for a second straight session after opening 0.52% lower following new U.S.-Iran airstrikes and a hawkish speech by Fed Chair Kevin Warsh that unsettled global markets. It has since rebounded from a Monday low near 6,617.

Chip Stocks Reverse an Early Slide

U.S. markets fell overnight: the Dow Jones Industrial Average dropped 0.7% and the S&P 500 fell 0.33%, after Warsh's Jackson Hole address stoked worries about a possible rate hike at the Fed's meeting later this month.

But the Kospi wiped out those losses in the afternoon as government data showed South Korea's August exports remained solid on strong chip demand, extending the index's chip-driven rally. Samsung rose 0.38% and SK Hynix added 1.14%, both supported by recently announced buyback programs.

“External uncertainty dampened investor sentiment, but strong buying from big companies backed up the index,” said Lee Kyung-min, an analyst at Daishin Securities.

Sellers Outnumbered Buyers Despite the Gain

Trading was thin at 263.7 million shares worth 17.5 trillion won ($12.8 billion), with gainers just outnumbering losers 444 to 421. Net selling by foreign investors amounted to 491.9 billion won, institutions to 634 billion won, and retail investors to 539.8 billion won.

Crude price gains lifted oil refiners: SK Innovation rose 7.81% and S-Oil climbed 1.07%. In contrast, Hanwha Aerospace dropped 3.99% and Celltrion edged down 0.48%.

As of 3:30 p.m., the won had weakened by 1.8 won to 1,370.4 per dollar, mirroring wider risk aversion from the Middle East escalation.