Seoul Stocks Fall Nearly 2% as Bond-Yield Concerns Hit Tech Shares
South Korea’s benchmark KOSPI closed lower for a second consecutive session as foreign and institutional selling weighed on semiconductor and electronics shares, while the won strengthened against the dollar.
South Korean stocks fell nearly 2 percent on Wednesday, extending losses for a second consecutive session as concerns about elevated bond yields weighed on major technology shares. The Korean won strengthened against the US dollar.
The benchmark Korea Composite Stock Price Index closed down 137.49 points, or 1.98 percent, at 6,803.90. The index opened 1.11 percent lower and briefly moved into positive territory before turning down again as investors remained cautious about borrowing costs and the outlook for large technology companies.
The decline came despite gains on Wall Street overnight. The Dow Jones Industrial Average advanced 0.49 percent, while the technology-heavy Nasdaq composite rose 0.45 percent to a record high. Global oil prices also eased on reduced supply concerns, and bond yields retreated from multidecade highs, but those developments were not enough to sustain a rebound in Seoul.
Foreign investors sold a net 2.59 trillion won worth of shares, while institutions posted net sales of 672.7 billion won. Individual investors bought a net 2.56 trillion won. Trading volume totaled 256.76 million shares valued at 19.69 trillion won, or about $14.68 billion. Declining stocks outnumbered gainers by 525 to 332.
Market participants also adopted a cautious stance ahead of Samsung Electronics’ preliminary earnings guidance, due Thursday. The combination of concern over US Treasury yields and uncertainty surrounding corporate results encouraged foreign and institutional investors to reduce exposure.
Technology heavyweights led the downturn. Samsung Electronics lost 1.29 percent to close at 268,500 won after starting the session higher. SK hynix fell 2.82 percent to 1.72 million won. SK Square, the parent company of SK hynix, declined 1.64 percent to 1.14 million won, while Samsung Electro-Mechanics dropped 4.24 percent to 1.6 million won.
The won was quoted at 1,340.4 per dollar at 3:30 p.m., stronger than the previous session’s close of 1,343.6. The currency’s gain contrasted with the equity market decline, underscoring how investors were balancing domestic earnings expectations with wider movements in global yields, oil prices and US markets.
Wednesday’s close left the KOSPI below the 6,900 level after another session dominated by selling in heavyweight technology names. Attention now turns to Samsung Electronics’ earnings guidance and whether it changes expectations for the semiconductor sector, which carries substantial weight in South Korea’s stock market.