Seoul Stocks Open Higher as Chipmakers Lead Early Gains

South Korean stocks opened higher on Monday, supported by gains in major semiconductor companies after a positive session for U.S. chip shares. Investors remained cautious, however, as elevated crude oil prices and geopolitical tensions in the Middle East continued to cloud the inflation and market outlook.

The benchmark Korea Composite Stock Price Index rose 64.09 points, or 0.93 percent, to 6,958.32 as of 9:15 a.m. The advance extended the positive momentum seen in the previous trading session, when the index gained 2.66 percent as easing inflation concerns improved investor sentiment.

The early rise was led by technology heavyweights. Samsung Electronics, the largest company by market capitalization on the Seoul exchange, climbed 3.26 percent. SK hynix added 0.22 percent. Their gains followed a rally in U.S. semiconductor shares on Friday, when the Philadelphia Semiconductor Index advanced 2.78 percent.

The broader U.S. market also finished higher. The technology-focused Nasdaq Composite gained 0.39 percent, while the S&P 500 edged up 0.17 percent. That performance provided a favorable signal for Seoul’s chip sector at the start of Monday trading.

Other large-cap shares moved in the opposite direction, leaving the market’s early performance uneven outside the semiconductor sector. Hyundai Motor declined 0.96 percent, while battery producer LG Energy Solution fell 2.75 percent. The mixed moves showed that the market’s advance was concentrated in selected technology names rather than spread uniformly across major industries.

Energy costs remained a key risk for investors. Brent crude was trading at about $104.68 a barrel, a level that could maintain pressure on inflation and on companies exposed to higher input and transportation costs. Persistent instability in the Middle East also continued to limit risk appetite despite the gains in equities.

In the currency market, the South Korean won traded at 1,386.2 won per U.S. dollar, 0.7 won lower than at the close of the previous stock trading session. The softer currency added another factor for investors monitoring imported costs and foreign fund flows.

Monday’s opening therefore reflected competing forces: strong overseas semiconductor sentiment and gains in Korea’s largest chipmakers on one side, and expensive energy, geopolitical uncertainty and weakness in some major industrial shares on the other. Trading later in the session will show whether chip strength can continue to offset those broader concerns.