FX.co ★ KOSPI Falls on Profit-Taking

The KOSPI index experienced a decline of 1.5% on Wednesday, settling at approximately 3,050. This downturn follows a streak of ascending to over three-year highs, as investors chose to capitalize on recent market gains. The overall market sentiment shifted to a more cautious tone due to a 2.2% year-on-year increase in the consumer price index for June, slightly surpassing expectations and highlighting ongoing inflationary challenges in light of the Bank of Korea’s recent fourth policy rate decrease. On the international stage, a significant phone conversation was held on Tuesday between UAE President Sheikh Mohamed bin Zayed Al Nahyan and South Korea's President Lee Jae-myung, during which they reinforced their strategic bilateral partnership. They committed to joint efforts in diverse areas such as economy, investment, energy, education, defense, technology, nuclear energy, artificial intelligence, and sustainability. The losses were primarily driven by tech stocks, with SK Hynix declining by 3.3%, LG Energy Solution by 0.5%, and a 0.2% drop in Samsung Electronics.