South Korean equity markets experienced a downturn on Tuesday, primarily due to a sustained selling spree by foreign investors targeting major technology firms. This local market sentiment mirrored an overnight tech sector slump observed on Wall Street. Concurrently, the South Korean won weakened significantly against the US dollar.
After a session marked by considerable volatility, the benchmark Korea Composite Stock Price Index (KOSPI) concluded the day with a substantial loss. The KOSPI plummeted by 244.38 points, representing a 3.25 percent decline, to close at 7,271.66.
The index opened 1.2 percent lower and then plunged further in the morning session, hitting an intraday low of 7,141.91 — a drop of 4.98 percent. While it staged a partial recovery in the afternoon, the KOSPI endured extreme price swings throughout the entire trading period.
Globally, US stock markets closed with mixed results overnight. Investor caution prevailed after US President Donald Trump announced that he had postponed a planned military strike on Iran, following requests from Gulf leaders.
Several prominent US technology companies, including industry giants like Apple and Microsoft, recorded losses. Investors are also keenly awaiting the crucial earnings report from artificial intelligence (AI) chip behemoth Nvidia, expected later this week.
Foreign investors extended their concentrated sell-offs to a ninth consecutive session. Their divestments were primarily focused on leading South Korean chipmakers, major automakers, and other significant market heavyweights.
Consequently, most of the market’s top-tier companies traded lower.
Among the notable decliners, shares of Samsung Electronics fell by 1.96 percent, closing at 275,500 won. Meanwhile, SK Hynix experienced a more substantial drop, losing 5.16 percent to finish the trading day at 1,745,000 won.
