The benchmark KOSPI fell nearly 2% to around 6,920 on Thursday, erasing the previous session’s gains as surging oil prices and higher US Treasury yields pressured risk assets. Brent crude climbed above $101 per barrel—its highest level since May—amid escalating US-Iran tensions and mounting worries over potential disruptions to Middle East energy supplies. This renewed concern about inflation and the future path of monetary policy.
The US 10-year Treasury yield advanced to around 4.86%, its highest level since November 2023, while Wall Street stocks declined for a third consecutive session, adding to the downward pressure on Korean equities. Large-cap names were broadly weaker, including Samsung Electronics (-2.1%), SK hynix (-2.2%), SK Square (-3.4%), Hyundai Motor (-1.3%), LG Energy Solution (-2.4%), and Doosan Enerbility (-4.1%).
In more supportive news, South Korea and France agreed to deepen cooperation in artificial intelligence and semiconductors, encompassing joint research and investment, which may provide longer-term tailwinds for Korea’s technology sector.
