Seoul: Seoul shares concluded the trading session lower for the second consecutive day, primarily due to losses in the technology sector, despite the alleviated concerns over potential tariff sanctions from the Trump administration. The Korean won also weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) fell by 11.26 points, or 0.62 percent, closing at 2,615.81. The session saw moderate trade volume, with 431.77 million shares traded, valued at 8.1 trillion won (approximately US$5.5 billion). Decliners outnumbered gainers, with 576 stocks falling compared to 303 advancing.
Initially, the KOSPI opened higher, reflecting overnight gains observed on Wall Street but later reversed its course. The Dow Jones Industrial Average increased by 1.42 percent, while the tech-heavy Nasdaq composite rose by 2.27 percent.
Foreign investors and individuals sold a net of 78.2 billion won and 63.5 billion won in stocks, respectively, overshadowing the stock purchases by institutions, which were valued at 67.9 billion won. Despite the drop, analysts noted that the index did not fall significantly as investors found some solace in indications that U.S. trade sanctions might be less extensive than previously feared.
U.S. President Donald Trump hinted on Monday (U.S. time) that trading partners might receive exemptions or reductions in tariffs based on their contributions to creating jobs in America. Tech stocks were the primary decliners in the market.
Samsung Electronics, a market leader, saw its shares fall by 1.16 percent to 59,800 won, while chip manufacturer SK hynix experienced a decline of 1.65 percent to 208,000 won. In the shipbuilding sector, HD Hyundai Heavy Industries dropped by 3.85 percent to 287,000 won, and Hanwha Ocean plummeted by 6.29 percent to 68,500 won.
Conversely, some gainers were noted in the automotive sector. Hyundai Motor, the leading carmaker, surged by 3.29 percent to 220,000 won, while its smaller affiliate Kia advanced by 2.13 percent to 100,800 won. This followed Hyundai Motor Group's announcement on Monday of a record US$21 billion investment in the United States through 2028, amid the changing tariff policies of the U.S. government.
The local currency was trading at 1,469.20 won against the U.S. dollar at 3:30 p.m., marking a decrease of 1.5 won from the previous session. In the bond market, prices fell, with the yield on three-year Treasurys rising by 0.8 basis points to 2.612 percent, and the yield on five-year government bonds increasing by 1.3 basis points to end at 2.700 percent.