Kospi Closes Higher as Technology Gains Offset Middle East Tensions; SK Hynix, Samsung Lead
South Korean stocks closed higher on Tuesday, led by gains in technology stocks, although investor sentiment remained cautious amid renewed Middle East tensions and uncertainty over the AI sector's outlook. Shares of market heavyweights Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) closed over 3% and nearly 4% at market close.The Korea Composite Stock Price Index, or Kospi, increased by 49.9 points, or 0.7%, to end at 6,856.83. The Kosdaq fell by 15.38 points, or 1.9%, to close at 783.98.In economic news, the Bank of Korea is projected to raise its benchmark interest rate by 25 basis points to 2.75% at its upcoming monetary policy meeting on Thursday, according to a Reuters poll of economists published on Tuesday.The move would mark the central bank's first interest rate hike in more than three years.Out of 37 economists surveyed by Reuters between July 7 and July 13, 36 forecast a rate increase this week.Driven by persistent inflation pressures that remain well above the central bank's 2% target, the majority of economists also expect policymakers to implement an additional rate hike before the end of 2026.On the corporate front, Hyundai Motor Securities (KRX:001500) will issue a derivative-linked bond worth 5 billion won, the company said in a Monday filing with the Korea Exchange.Subscriptions and payment are scheduled for Wednesday, July 15.Shares of Hyundai Motor Securities fell nearly 2% at market close.
