South Korean Market Rises 0.6% as Tech Stock Rebound Lifts Index from Seven-Week Low

South Korean shares advanced on Thursday, recovering from a seven-week low hit in the prior session, as heavyweight chipmakers tracked overnight gains in their U.S. semiconductor peers.

The benchmark KOSPI index closed up 45.12 points, or 0.62%, at 7,291.91. During the session, the index fluctuated between a gain of 4.1% and a loss of 2.5%, reflecting the heightened price volatility seen in recent weeks.

The index had fallen for a third consecutive session on Wednesday, hitting its lowest close since May 20th. That level marked a decline of more than 20% from the record peak reached at the end of June, a threshold commonly seen as confirming a bear market.

"Volatility has picked up again, with the index giving up its gains as retail investors sold shares amid profit-taking pressure and concerns over the chip sector," said Daishin Securities analyst Lee Kyoung-min.

On Wall Street, the S&P 500 index closed lower on Wednesday after U.S. President Donald Trump stated that a provisional agreement aimed at ending the conflict with Iran was "over."

Among heavyweight constituents of the Korean index, chipmaker Samsung Electronics Co Ltd rose 0.18%, while peer SK Hynix Inc jumped 5.30%. Battery maker LG Energy Solution Ltd declined 0.63%.