Seoul:South Korean stocks declined by nearly 2 percent on Wednesday, marking their second consecutive day of losses. The downturn was primarily led by a drop in technology shares against the backdrop of rising bond yields reaching multidecade highs, although the Korean won strengthened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed down 137.49 points, or 1.98 percent, at 6,803.90. This came after the index briefly turned higher following an initial decrease of 1.11 percent, but investor concerns about elevated bond yields ultimately drove it lower.
Despite overnight gains on Wall Street, local shares continued to fall. Global oil prices eased on supply concerns, and bond yields retreated from their highs. The Dow Jones Industrial Average rose by 0.49 percent, and the Nasdaq composite gained 0.45 percent, reaching a record high.
Trade volume was relatively light, with 256.76 million shares worth 19.69 trillion won (US$14.68 billion) changing hands. Decliners outnumbered advancers 525 to 332. Foreign investors and institutions were net sellers, unloading 2.59 trillion won and 672.7 billion won, respectively, while individual investors bought a net 2.56 trillion won.
Lee Kyung-min, an analyst at Daishin Securities, noted that the KOSPI faced pressure from rising international oil prices and U.S. Treasury yields. Additionally, investors were cautious ahead of Samsung Electronics' preliminary earnings report, leading to net selling by both foreign and institutional investors.
Major market players ended the day lower. Samsung Electronics, a key market bellwether, fell 1.29 percent to 268,500 won after opening higher in anticipation of Thursday's earnings guidance. SK hynix, a chip giant, decreased by 2.82 percent to 1.72 million won, while its parent company SK Square dropped 1.64 percent to 1.14 million won. Samsung Electro-Mechanics also saw a decline, shedding 4.24 percent to 1.6 million won.
The Korean won was quoted at 1,340.4 against the U.S. dollar as of 3:30 p.m., compared to 1,343.6 won at the previous session's close.