FX.co ★ South Korean Shares Fall on US Tech Weakness

On Tuesday, the benchmark KOSPI index saw a slight dip of 0.2% to approximately 4,210, after approaching a two-month high. This decline was largely attributed to a downturn in global tech stocks. Overnight, significant losses in US large-cap technology companies, including key Nasdaq players, negatively influenced investor sentiment. This led to both foreign and institutional investors selling off shares. Concurrently, the announcement of weaker retail sales, which marked the most significant drop in 21 months, underscored ongoing difficulties in domestic consumption, stalling any potential gains. Significant declines were observed in companies such as LG Energy Solution (-2.9%), HD Hyundai Heavy Industries (-1.9%), Kia Corporation (-0.3%), Shinhan Financial (-1.2%), and Hanwha Ocean (-1.6%). Nevertheless, the semiconductor sector provided some relief, with Samsung Electronics (up 0.9%) and SK hynix (up 1.9%) recording gains. This was driven by strong November chip production, indicating robust global demand and the continuing expansion in the AI sector. Investors are maintaining a careful focus on their year-end strategies and forthcoming US economic data, with the limited year-end liquidity resulting in subdued trading activity.