Key Takeaways
- South Korean shares fell 2.78% on Friday.
- The KOSPI index closed at 6,844.02 points.
- Foreign investors sold shares worth $1.23 billion.
South Korean shares experienced a significant decline on Friday, with the benchmark KOSPI index closing 2.78% lower at 6,844.02 points by 03:25 GMT.
The sell-off was driven by concerns over a potential Federal Reserve interest rate hike, exacerbated by a sharp rise in US treasury bond yields.
Among major companies, Samsung Electronics saw a 4.46% drop, while SK Hynix and LG Energy Solution also experienced losses of 4.21% and 3.42%, respectively.
Hyundai Motor and Kia Corp saw their shares decline by 2.70% and 1.02%, respectively, reflecting broader market sentiment.
The South Korean won strengthened by 0.30% to 1,345.4 per dollar, while the KOSPI has risen 62.40% year-to-date.
Foreign investors were net sellers of shares worth 1,661.1 billion won ($1.23 billion), indicating a shift in global investment flows.
Oil prices surged more than 6% on Thursday, with both major benchmarks trading above $100 a barrel, due to increased concerns over supply disruptions.
The South Korean government is preparing to announce a major energy investment project in the United States worth more than $100 billion, aimed at boosting artificial intelligence infrastructure.
In the debt market, the most liquid three-year Korean treasury bond yield rose by 9.3 basis points to 4.025%, while the benchmark 10-year yield increased by 9.9 basis points to 4.554%.
