FX.co ★ South Korean Shares Pull Back from Record High

The KOSPI index retreated over 2% to approximately 5,100 on Monday, ending a streak of record gains, as global risk sentiment took a downturn. This shift came on the heels of losses in technology stocks on Wall Street, with concerns about AI profitability and Kevin Warsh’s potential nomination as Federal Reserve chair stoking fears of a more restrictive U.S. monetary policy. Market sentiment was further challenged by uncertainties over U.S. tariffs. President Donald Trump issued a warning of possible increased duties linked to delays in South Korea's approval of a U.S. investment bill, despite signals from Seoul indicating the bill may pass by late February or early March. While data pointed to record-breaking January exports boosted by strong semiconductor demand, this highlighted a disconnect between strong market fundamentals and short-term risk aversion. Major chipmakers saw their shares fall, with Samsung Electronics declining 1.9% and SK hynix dropping 3.6%. Other significant losses included Hyundai Motor (-1.0%), LG Energy Solution (-1.8%), SK Square (-5.1%), and Doosan Enerbility (-1.2%).