The South Korean stock market has experienced declines in two consecutive sessions, losing nearly 50 points or 1.8 percent in total. The KOSPI currently stands just above the 2,675 level, and further declines are anticipated on Thursday.
The global outlook for Asian markets is negative due to concerns over treasury yields and interest rate forecasts. Both European and U.S. markets saw declines, and Asian markets are expected to follow suit.
On Wednesday, the KOSPI ended significantly lower, mainly due to losses in the technology, chemical, and automobile sectors. The index dropped 45.55 points or 1.67 percent to close at 2,677.30, trading within a range of 2,677.07 and 2,721.63. Trading volume was 431 million shares, valued at 12.7 trillion won, with 673 decliners and 220 gainers.
Key movers included:
- Shinhan Financial fell 0.54 percent
- KB Financial rose 1.30 percent
- Hana Financial lost 0.32 percent
- Samsung Electronics dropped 3.09 percent
- Samsung SDI declined 4.82 percent
- LG Electronics gained 1.10 percent
- Naver decreased 1.18 percent
- LG Chem fell sharply by 5.24 percent
- Lotte Chemical plummeted 7.37 percent
- S-Oil decreased 0.29 percent
- SK Innovation dropped 2.76 percent
- POSCO declined 2.35 percent
- SK Telecom increased slightly by 0.39 percent
- KEPCO fell 1.11 percent
- Hyundai Mobis decreased 0.68 percent
- Hyundai Motor retreated 1.51 percent
- Kia Motors slipped 0.33 percent
- SK Hynix was unchanged
Wall Street also experienced declines, with major indices opening lower on Wednesday and staying in the red throughout the day. The Dow dropped 411.32 points or 1.06 percent to close at 38,441.54, the NASDAQ fell 99.30 points or 0.58 percent to close at 16,920.58, and the S&P 500 lost 39.09 points or 0.74 percent to finish at 5,266.95.
The weakness in U.S. markets was primarily attributed to a continued rise in treasury yields, with the yield on the benchmark ten-year note reaching its highest level in nearly a month. The ongoing increase in treasury yields has intensified concerns about interest rate forecasts ahead of key inflation data scheduled for later this week.
Crude oil prices also declined on Wednesday due to worries about the impact of higher borrowing costs on energy demand. West Texas Intermediate (WTI) crude oil futures for July fell by $0.60 to settle at $79.23 per barrel.
