South Korean shares fall nearly 3 per cent amid tech selloff
The benchmark KOSPI index dropped as chipmakers Samsung Electronics and SK Hynix led losses following a Wall Street decline.
The benchmark KOSPI index fell 159.11 points, or 2.72 per cent, to 5,699.97 on Tuesday, tracking losses in global technology stocks, according to a Reuters report cited by The Economic Times.
Technology stocks led the decline in Seoul, with chipmaker Samsung Electronics falling 3.17 per cent and SK Hynix dropping 4.14 per cent. Other heavyweights such as battery maker LG Energy Solution fell 3.51 per cent, while Hyundai Motor shed 3.57 per cent and Kia Corp lost 1.25 per cent.
The weakness in South Korea mirrored losses on Wall Street, where US stocks edged lower due to concerns over technology sector earnings. This selloff overshadowed a plunge of more than 7 per cent in oil prices on Monday, which occurred after discussions between Iranian and Qatari officials raised hopes of diplomatic progress in the Middle East.
In the currency market, the South Korean won strengthened by 0.39 per cent to 1,340.8 per US dollar. Foreign investors were net sellers, offloading shares worth 811.4 billion won.
South Korean government bond yields declined as bond prices rose. The benchmark three-year Korean Treasury bond yield fell 2 basis points to 3.724 per cent, while the 10-year yield declined 4.5 basis points to 3.997 per cent.