On Wednesday, the South Korean stock market ended a six-day winning streak that had seen the KOSPI index rise nearly 120 points, or 4.6 percent. The KOSPI is now positioned just below the 2,570-point mark, and it faces potential further declines on Thursday.
The global outlook for Asian markets remains bearish, with overbought regional exchanges expected to experience profit-taking. European and U.S. markets closed mostly lower, indicating a similar trend for Asian markets.
The KOSPI saw a sharp decline on Wednesday, driven by losses in financial shares, technology stocks, and industrials, even though chemical companies posted gains.
On the day, the index dropped 35.36 points, or 1.34 percent, to close at the daily low of 2,596.32 after reaching a high of 2,663.36. Trading volume was 441.8 million shares, valued at 11.4 trillion won. There were 516 decliners to 355 gainers.
Key movers included Shinhan Financial, which fell 5.14 percent, and KB Financial, which dropped 4.76 percent. Hana Financial decreased by 3.19 percent, Samsung Electronics retreated 1.58 percent, and Samsung SDI lost 1.55 percent. Conversely, SK Hynix rose by 1.10 percent. LG Electronics tumbled 6.96 percent, Naver declined 1.07 percent, while LG Chem gained 0.72 percent and Lotte Chemical advanced 0.91 percent. S-Oil added 0.65 percent, SK Innovation sank 0.74 percent, and POSCO slumped 2.72 percent. SK Telecom was down 1.38 percent, KEPCO fell 1.29 percent, Hyundai Mobis shed 1.11 percent, Hyundai Motor declined 0.59 percent, and Kia Motors lost 0.96 percent.
Wall Street provided weak guidance, with major averages opening mixed on Wednesday but trending lower to close mostly in the red.
The Dow Jones Industrial Average fell 293.47 points, or 0.70 percent, to close at 41,914.75. The NASDAQ managed a slight increase, rising 7.68 points, or 0.04 percent, to 18,082.21. The S&P 500 dipped 10.67 points, or 0.19 percent, to finish at 5,722.26.
The mixed performance on Wall Street reflects trader uncertainty about the market's near-term outlook following recent gains that have propelled the Dow and the S&P 500 to record highs.
In economic developments, the Commerce Department reported a significant pullback in new home sales for August.
This week, data on weekly jobless claims, durable goods orders, and personal income and spending are due for release, while investors will also be closely watching Fed Chair Jerome Powell's upcoming speech.
Oil prices plummeted on Wednesday amid concerns over demand outlook and easing fears about supply disruptions in Libya. West Texas Intermediate Crude oil futures for November fell by $1.87, or 2.6 percent, to $69.69 a barrel.
