FX.co ★ South Korean Shares Fall Amid Foreign Selling

The benchmark KOSPI experienced a decline of 0.19%, closing at 3,846 on Monday. This downturn extends the losses from the previous trading session and is primarily driven by renewed selling from foreign investors. Initially, the index saw an increase of over 1% earlier in the session, fueled by optimism regarding potential interest rate cuts in the United States. However, this positive sentiment was reversed around midday as foreign investors became significant net sellers, dragging the market into negative territory. The Korean won's continued depreciation towards multi-month lows exacerbated pressures on equities, resulting in further outflows as investors exercised caution regarding currency risks. Additionally, domestic sentiment appeared subdued ahead of the upcoming Bank of Korea policy meeting. While the market anticipates a rate hold, there remains apprehension over a potential change in tone. The fragile mood from the previous Friday also persists, as noticeable losses were observed in major companies such as SK Hynix, down 8.76%, LG Energy Solution, down 2.59%, Hyundai Motor, down 0.77%, Doosan Enerbility, down 5.92%, and Hanwha Aerospace, down 5.13%.