Kospi falls for fourth day as Fed rate, oil rattle investors
Korea's benchmark index declined for a fourth session as rising oil prices, elevated U.S. yields and Fed uncertainty prompted foreign and institutional selling.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 6,627.26 points on Sept. 15, down 57.11 points, or 0.85 percent, from the previous trading session.
YONHAP
Stocks closed lower for the fourth session Tuesday as investors continue to grapple with macro uncertainties and the latest calls from AI leaders to slow the pace of industry development. The local currency weakened against the dollar.
The benchmark Kospi fell 57.11 points, or 0.85 percent, to 6,627.26.
Trade volume was light at 274 million shares worth 16.2 trillion won ($11.9 billion). Losers outnumbered winners 621 to 253.
Retail investors were net buyers, snatching up 833.13 billion won. Institutional and foreign investors off-loaded a combined net 2.48 trillion won worth of shares.
“Although there were no new negative factors, investors seemed to be sensitive to external uncertainties, such as rates and additional rises in global oil prices,” Lee Kyoung-min, an analyst from Daishin Securities, said.
Brent crude, the international oil benchmark, has risen around 1.6 percent to above $107 per barrel, after the yield on 10-year U.S. Treasurys breached 5 percent.
Investors are also anticipating the Federal Reserve's rate-setting meeting this week, widely expected to deliver a rate-hike decision, the analyst added.
In Seoul, most market heavyweights closed lower.
Samsung Electronics inched down 0.2 percent to 248,500 won, while SK hynix shed 0.41 percent to 1.69 million won.
Defense companies lost ground on profit taking. Hanwha Aerospace tumbled 6.51 percent to 1.06 million won, and LIG Defense & Aerospace dipped 4.82 percent to 671,000 won.
Among the winners were battery makers, boosted by U.S. President Donald Trump's formal criticism of Ford Motor Company over its business partnership with Chinese automotive firms.
Battery heavyweight LG Energy Solution strengthened 3.98 percent to 365,500 won, and Samsung SDI rose 2.82 percent to 547,000 won.
The local currency weakened by 12.1 won from the previous session to trade at 1,359.4 against the dollar as of 3:30 p.m.
Yonhap
