South Korean Shares Fall to Over 1-Month Low

The benchmark KOSPI slipped more than 2% to around 6,460 on Monday, extending losses to an over one-month low as technology stocks led the decline amid lingering concerns over Middle East tensions. SK hynix and Samsung Electronics fell nearly 4% and more than 2%, respectively, as continued foreign selling overshadowed strong semiconductor earnings and record export growth. Renewed Houthi attacks on Saudi Arabia's main airport over the weekend heightened concerns over a broader regional conflict, while the possibility of further US involvement added to geopolitical uncertainty. At the same time, elevated US Treasury yields and persistent inflation concerns weighed on equities. Other notable decliners included SK Square (-3.9%), Doosan Enerbility (-5.1%), Hanwha Aerospace (-2.0%), HD Hyundai Heavy Industries (-3.5%), LG Electronics (-5.0%), and LS Electric (-3.1%).

The benchmark KOSPI slipped 2.62% to close at 6,626 on Thursday, extending losses for a third straight session as elevated global bond yields and inflation concerns weighed on equities. The US 10-year Treasury yield climbed to 5.35%, its highest level since 2002, while Federal Reserve minutes showed most officials expected another rate increase this year, keeping the outlook for US borrowing costs elevated and weighing particularly on technology stocks. At the same time, rising oil prices added to inflation risks and limited the scope for monetary easing. Losses were seen in Samsung Electronics (-2.42%), SK hynix (-2.44%), SK Square (-8.06%), Hyundai Motor (-3.42%), Hanwha Aerospace (-8.33%), and Doosan Enerbility (-3.11%). Meanwhile, Samsung Electronics estimated a record third-quarter operating profit of KRW 107.4 trillion, up 782.5% year-on-year, on strong AI demand and higher memory chip prices. South Korean markets will be closed on Friday for a national holiday.

The benchmark KOSPI slipped 1.98% to close at 6,804 on Wednesday, extending losses from the previous session as concerns over the sustainability of the semiconductor earnings boom and elevated global bond yields weighed on sentiment. Investors remained cautious ahead of Samsung Electronics' preliminary third-quarter earnings report on Thursday, with attention focused on whether strong memory-chip demand and pricing can last into 2027 and 2028. At the same time, US Treasury yields remained elevated despite retreating from multidecade highs, keeping pressure on equity valuations. Losses were seen in SK hynix (-2.54%), Samsung Electronics (-0.92%), SK Square (-1.64%), Hyundai Motor (-3.30%), Hanwha Aerospace (-4.59%), and HD Hyundai Heavy Industries (-4.76%). Meanwhile, oil prices fell amid recovering Middle Eastern exports and a planned G7 release of strategic reserves. South Korea's stronger coverage of November crude oil supplies also reduced concerns over potential energy disruptions.