South Korea

South Korea's KOSPI extended its losses on Friday, falling nearly 6% as investors continued to reduce exposure to the country's technology sector following a broad global semiconductor selloff.

The index remained under pressure after concerns over AI-related valuations triggered heavy selling in major chipmakers earlier this week. Although Micron's strong earnings reaffirmed robust long-term AI demand, investors continued taking profits in Korean semiconductor stocks, with heavyweight memory producers leading the decline.

Sentiment was also weighed down by uncertainty surrounding global trade and persistent inflation concerns in the United States. The latest U.S. Core PCE data remained well above the Federal Reserve's 2% target, reinforcing expectations that interest rates could stay elevated for longer and reducing appetite for high-growth technology stocks.

With semiconductor companies accounting for a significant share of the KOSPI, continued weakness in the global chip sector has amplified selling pressure. Investors will now watch for signs of stabilization in AI-related technology stocks and upcoming economic data to gauge whether the recent correction has run its course.
South Korea’s economy expanded faster than expected in the first quarter, with GDP rising 3.6% year-over-year, above the 2.7% forecast and up from 1.6% in the previous quarter. On a quarterly basis, growth came in at 1.7%, significantly exceeding expectations of 0.9% and rebounding from a 0.2% contraction previously.
South Korea’s consumer confidence declined sharply in April, with the index falling to 99.2 from 107.0 in the previous month. The drop brings sentiment below the neutral 100 level, indicating a shift toward pessimism among households.
South Korea’s producer inflation showed a notable acceleration in March, signaling renewed upstream price pressures in the economy. On a monthly basis, the Producer Price Index (PPI) rose by 1.6%, sharply higher than the previous 0.6% increase.

On an annual basis, PPI climbed 4.1%, up from 2.5% in the prior reading, indicating a significant pickup in producer-level inflation.
South Korea Trade Balance came in at $26.24B in March, slightly above expectations ($25.74B) and the previous figure.
South Korea Unemployment Rate came in at 2.7% for March, improving from the previous 2.9%.
South Korea Holds Interest Rates Steady at 2.50%
South Korea’s external balance strengthened significantly in February.

The Current Account South Korea surplus rose to $23.19 billion, up sharply from $13.26 billion previously.
South Korea’s March inflation data showed a mixed but generally moderate trend.

On a monthly basis, CPI rose 0.3%, below the 0.6% forecast and unchanged from the previous 0.3%, indicating softer short-term price momentum.

On an annual basis, CPI increased 2.2%, slightly below expectations of 2.4% but higher than the previous 2.0%, suggesting inflation is stabilizing but still edging upward compared to last month.
South Korea Industrial Production showed a mixed picture in February.

On a monthly basis, production surged by 5.4%, sharply rebounding from the previous -2.4% and well above expectations (1.8%), indicating a strong short-term recovery in industrial activity.

However, on an annual basis, output contracted by -2.2%, a significant slowdown from the previous 6.8% growth and below expectations (6.0%), signaling underlying weakness compared to last year.
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