On Tuesday, the KOSPI index declined by 0.19% to close at 3,424, reversing its gains from the previous session. This downturn was primarily driven by weaker performance in chip and IT sectors, affecting investor sentiment. Notable decliners included Samsung Electronics, which fell by 0.59%, SK hynix down by 0.14%, LG Energy Solution decreasing by 1.28%, Celltrion plummeting by 2.74%, and Naver dipping by 2%. However, the drop was somewhat mitigated by gains in the industrial sector, highlighted by Hanwha Aerospace surging 4.72%, HD Hyundai Heavy Industries increasing by 4.58%, and Hyundai Motor inching up by 0.23%.
On a global scale, risk aversion was accentuated by the looming threat of a U.S. government shutdown, potentially delaying critical payroll data and leaving the Federal Reserve with limited insights ahead of its October meeting. Additionally, China reported a sixth consecutive month of contraction in factory activity, casting a shadow over prospects for Korean exporters. This was compounded by subdued output in Japan, indicating weaker demand across the broader region.
