KOSPI Drops 1.76 Percent as Oil Tops 100 Dollars
South Korea's benchmark index closed lower on Friday, driven by surging global energy costs and rising US Treasury yields.
The KOSPI closed at 6,909.91 on Friday, a decline of 1.76 percent. The index opened 3.29 percent lower at 6,802.50 before trimming losses in the afternoon session. This drop reflects heightened inflation concerns across Asian markets.
West Texas Intermediate and Brent crude futures climbed above 100 dollars per barrel. This surge was fueled by geopolitical tensions in the Middle East. Higher energy costs directly increased input expenses for Korean manufacturers.
Foreign Investors Exit Korean Stocks
Foreign investors sold a net 2.29 trillion won of shares. This amount equals approximately 1.70 billion dollars. Institutional investors added to the selling pressure with net sales of 1.22 trillion won.
Retail investors acted as the primary source of demand. They purchased a net 1.87 trillion won worth of equities. This divergence highlights a shift in market sentiment toward domestic retail participation.
US Yield Spike Pressures Equities
The 10-year US Treasury yield rose 12 basis points to 4.96 percent. It approached the critical 5 percent threshold. This yield increase raised the discount rate for future corporate earnings.
US producer prices rose 5.4 percent year over year in August. This figure exceeded the market expectation of 5.3 percent. Investors now await the August consumer price index data for further policy clues.
Won Weakens Against the Dollar
The won-dollar exchange rate ended at 1,345.9 won per dollar. The currency weakened by 6.7 won from the previous session. This depreciation adds import cost pressure to the domestic economy.
Samsung Electronics fell 3.35 percent to close at 259,500 won. SK hynix declined 2.21 percent to 1.812 million won. The Kosdaq index dropped 1.95 percent to finish at 820.64. These moves align with the broader risk-off tone reported by GN auto markets/bonds: bond yields.
