Seoul Shares Fall as Tech Losses and Rising Bond Yields Weigh on Market

South Korean stocks ended lower on Tuesday as losses in major technology companies outweighed an early advance, with investors confronting rising bond yields and renewed concerns about inflation and energy costs.

The benchmark Korea Composite Stock Price Index closed at 6,941.39, down 62.35 points, or 0.89 percent. The market had opened higher before reversing direction during the session. Declining shares outnumbered advancing ones by 459 to 424.

Trading volume reached 257.27 million shares, with transactions valued at 19.1 trillion won, equivalent to about $14.2 billion. Foreign investors sold a net 1.75 trillion won of shares, while institutions recorded net sales of 1.98 billion won. Individual investors moved in the opposite direction, purchasing a net 740.56 billion won.

Technology stocks were among the main sources of pressure. Samsung Electronics, the market’s largest company, fell 1.45 percent to 272,000 won. Rival chipmaker SK hynix dropped 3.69 percent to 1.77 million won. Korea Aerospace Industries also declined, losing 3.22 percent to finish at 129,200 won.

The retreat came as global bond yields remained at multidecade highs, raising concerns about financing conditions and valuations for growth-oriented stocks. Investors were also monitoring elevated energy costs and the possibility of renewed inflation pressure. With third-quarter corporate earnings approaching, analysts said market participants were likely to remain cautious until stronger results or a fresh policy catalyst provided clearer direction.

Not all large companies lost ground. LG Electronics surged 7.64 percent to 232,500 won after securing a long-term agreement to supply chillers for artificial intelligence data centers to a North American company. Samsung SDI, South Korea’s second-largest battery maker, advanced 8.7 percent to 575,000 won. Hyundai Motor gained 0.43 percent to close at 348,000 won.

The day’s performance was not a uniform retreat. Strong gains in an electronics company, a battery maker and an automaker coexisted with losses in key semiconductor and aerospace shares, producing a divided market beneath the lower headline index.

The won strengthened slightly against the U.S. dollar. It was quoted at 1,343.6 won per dollar at 3:30 p.m., compared with 1,344 won at the previous trading session’s close. The combination of a firmer currency and weaker equities underscored the mixed signals facing investors as they assess global rates, corporate performance and inflation risks.