Fourth consecutive session of losses

Samsung Electronics falls, SK hynix rises

Kosdaq gains on robot stock strength

An employee monitors stock and exchange rate movements at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Tuesday, as the Kospi opened lower and hovered in the 6,660 range. [Yonhap]
An employee monitors stock and exchange rate movements at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Tuesday, as the Kospi opened lower and hovered in the 6,660 range. [Yonhap]

The Kospi weakened in early trading Tuesday, pressured by an overnight surge in US Treasury yields and crude oil prices alongside growing anxiety over the pace of AI industry development. Foreign investors extended their selling streak to a fifth consecutive session, dragging the index lower.

According to Korea Exchange, the Kospi stood at 6,633.89 as of 9:18 a.m. Tuesday, down 50.48 points, or 0.76 percent, from the previous session — marking a fourth straight day of losses since Thursday.

The index opened down 25.12 points, or 0.38 percent, at 6,659.25 before widening its losses slightly.

Foreign investors and institutional investors were net sellers of 212.2 billion won ($158 million) and 183.2 billion won, respectively, while retail investors were net buyers of 345.3 billion won. Foreign investors have been net sellers on the Kospi for five consecutive sessions since Wednesday. They were also net sellers of 234.9 billion won in the KOSPI 200 futures market.

Wall Street closed broadly lower overnight, with all three major indexes falling in tandem. The Dow Jones Industrial Average dropped 0.29 percent and the S&P 500 fell 0.48 percent, while the NASDAQ Composite declined 0.56 percent.

The moves came after Saudi Arabia shut down its key East-West Pipeline, stoking fears of supply disruptions and sending crude prices sharply higher. Brent crude futures for November delivery settled up 1.02 percent at $105.68 per barrel, while West Texas Intermediate futures for October delivery rose 1.34 percent to $101.39.

The oil price surge heightened inflation concerns ahead of the Federal Reserve's Federal Open Market Committee meeting scheduled for this week.

In response, the yield on the benchmark 10-year US Treasury note surged past the psychologically significant 5 percent threshold — the first time it has crossed that level since October 2023.

Technology stocks also stumbled as calls by industry leaders for a slowdown in AI development came into sharper focus.

Nvidia fell 3.36 percent and Micron Technology dropped 5.25 percent, sending the Philadelphia Semiconductor Index tumbling 5.86 percent. SK hynix's American depositary receipts also slid 7.60 percent.

Domestic semiconductor stocks faced similar downward pressure. However, the index's losses were partly cushioned by the view that much of the selloff tied to the AI slowdown narrative had already been priced in during Monday's sharp decline.

Among large-cap stocks, Samsung Electronics slipped 0.20 percent while SK hynix edged up 0.06 percent, with the two semiconductor heavyweights moving in opposite directions.

Samsung Electro-Mechanics fell 1.72 percent, LG Energy Solution lost 1.00 percent, Hyundai Motor declined 0.40 percent, KB Financial Group dropped 1.43 percent, and Doosan Enerbility slid 2.07 percent. On the upside, SK Square gained 0.70 percent, Samsung SDI rose 0.56 percent, and LG Electronics climbed 1.41 percent.

Han Ji-young, a researcher at Kiwoom Securities, said the domestic market on Tuesday was likely to recover some of Monday's sharp losses, supported by the view that the impact of the 10-year US Treasury yield breaching 5 percent and the plunge in US semiconductor stocks had already been reflected in Monday's session.

The Kosdaq was up 1.22 points, or 0.15 percent, at 808.01 at the same time, after opening down 0.30 points, or 0.04 percent, at 806.49 and fluctuating near the flatline.


yuni@heraldcorp.com