FX.co ★ South Korean Shares Retreat from Record High

On Thursday, the benchmark KOSPI Index experienced a near 2% decline, settling around 5,266, retreating from its peak in the previous session. This drop was primarily influenced by a renewed global technology stock sell-off, significantly impacting chip manufacturers. The downturn mirrored overnight losses on Wall Street, driven by valuation-driven sales in U.S. tech stocks, which then affected global semiconductor markets following AMD's issuance of a less optimistic forecast than anticipated. Leading semiconductor companies, Samsung Electronics and SK hynix, each saw declines exceeding 3%, significantly impacting the index. The losses were concentrated within technology and AI sectors, indicating a wave of profit-taking after recent advancements. Other major companies experiencing declines included SK Square, with a 3.7% drop, Hanwha Aerospace at 5.4%, HD Hyundai Heavy Industries at 2.7%, and Doosan Enerbility at 3.6%, while Hyundai Motor experienced a slight dip of 0.7%. Additionally, the Korean won depreciated against the US dollar, adding further strain to investor confidence.