Wall Street gains and strong Amazon earnings lifted sentiment, though AI valuation concerns, US-Iran uncertainty and sticky core inflation kept a lid on broader advances.
South Korea's benchmark KOSPI climbed 1.62% to close at 6,359 on Tuesday, recovering part of the previous session's decline as investors moved back into recently pressured shares. Risk appetite was helped by overnight gains on Wall Street, where strong earnings from Amazon and advances in major AI-related technology stocks improved sentiment. Samsung Electronics rose 0.21% and SK hynix added 0.64%, while other notable gainers included SK Square, up 3.41%, LG Energy Solution, up 3.96%, HD Hyundai Heavy Industries, up 2.66%, and Hanwha Aerospace, up 9.25%. Even so, caution persisted as uncertainty around AI-related valuations lingered after the recent tech-led selloff. Conflicting signals on US-Iran negotiations also limited broader upside. Separately, softer-than-expected South Korean inflation eased near-term price pressure, but firmer core inflation supported expectations that the Bank of Korea (South Korea's central bank) will maintain a cautious policy stance.