The benchmark KOSPI plunged more than 4% to around 6,560 on Wednesday, deepening the previous session’s losses as a global bond selloff unnerved investors. The yield on the US 30-year Treasury climbed to its highest level since 2007, while long-term government bond yields in Japan and Europe also rose to multi-year highs. Those moves intensified concerns over elevated borrowing costs and put significant pressure on growth and technology shares.
The global technology rout hit Korean chipmakers especially hard. Samsung Electronics and SK hynix dropped about 6% and 7%, respectively, mirroring sharp losses in US semiconductor names. Other major decliners included SK Square (-9.6%), Hyundai Motor (-3.5%), KB Financial Group (-2.3%), Kia Corporation (-3.4%), and Doosan Enerbility (-3.3%).
At the same time, mounting inflation worries were compounded by higher oil prices. Crude extended gains after President Donald Trump stated that the US is not engaged in talks with Iran, while stalled peace efforts heightened fears of further disruptions to Middle Eastern oil supplies.
