Seoul Stocks Open Lower as Chip Shares Weaken
South Korea’s KOSPI opened lower on Thursday, extending pressure from a three-session losing streak as major semiconductor shares declined and the won weakened against the dollar.
South Korean shares opened lower on Thursday as declines in major semiconductor companies weighed on the benchmark index and extended the market’s recent weakness.
The Korea Composite Stock Price Index opened 0.34 percent below the previous session and was down 26.3 points, or 0.38 percent, at 6,811.74 as of 9:15 a.m. The early decline followed three consecutive losing sessions, keeping attention on whether the market could stabilize after its recent retreat.
Large technology stocks were among the main sources of pressure. Samsung Electronics, the country’s biggest listed company by market value, fell 0.28 percent in early trading. SK hynix declined 0.11 percent, while SK Square, its parent company, dropped 2.81 percent. Samsung Electro-Mechanics lost 2.05 percent.
The weakness in chip-related names was significant because semiconductor companies carry substantial weight in the KOSPI. Their declines can therefore have an outsized effect on the direction of the broader index, even when movements in individual shares are relatively modest.
Overnight trading in the United States provided a mixed backdrop. The Dow Jones Industrial Average fell 0.86 percent and the S&P 500 slipped 0.25 percent, while the technology-heavy Nasdaq Composite gained 0.24 percent. Cooler-than-expected inflation data offered some support, but elevated U.S. Treasury yields and rising oil prices continued to weigh on investor sentiment.
The South Korean won also weakened against the U.S. dollar. It traded at 1,358.7 won per dollar in the early session, down 3 won from the previous trading day’s close. A softer won can reflect stronger demand for dollars and may add to concerns about foreign fund flows and import costs.
The figures showed that the pressure was not confined to one company. Losses across Samsung Electronics, SK hynix, SK Square and Samsung Electro-Mechanics placed several major parts of Korea’s technology sector in negative territory at the same time, reinforcing the weak tone at the opening bell.
The opening figures represent an early snapshot rather than the market’s final direction for the day. Prices can change substantially before the close as investors respond to movements in overseas markets, bond yields, oil prices and currency trading. For the opening session, however, the combination of losses in heavyweight chip shares and a weaker won left Seoul equities under pressure.