SEOUL, February 06 (AJP) - Markets across Asia flashed red Friday following a broad Wall Street pullback, with hitherto regional winner Korean stocks hardest hit by a global institutional selling spree.
Losses in AI and big-tech shares on Nasdaq loomed over the KOSPI amid a decisive position shift by domestic and foreign institutions this week, setting off the second sell-side sidecar this week.
Traders said the correction was inevitable after an almost nonstop rally this year until this week, while retailers jumped on the opportunity to join the stock-boom bandwagon, helping to defend the hard-won 5,000 mark for the KOSPI and 1,000 for the KOSDAQ.
The selloff reflected profit-taking after recent sharp gains, compounded by overnight weakness in U.S. markets. Investor sentiment deteriorated further as concerns resurfaced over the profitability outlook for AI-related big-tech companies.
As of 10:54 a.m., the benchmark KOSPI was 2.65 percent lower at 5,024.75 and the secondary KOSDAQ retreated 2.61 percent to 1,079.45.
Individual and institutional investors bought a net 1.519 trillion won ($1.03 billion) and 17.1 billion won, respectively, while foreign investors sold a net 1.5763 trillion won.
The won came under pressure as the U.S. dollar strengthened amid global risk aversion. The dollar shot up above 1,470 in early trading on heavy foreign equity selling, but eased to 1,480.40, up 0.60 won from the previous session.
Foreign selloff mostly targeted the biggest winners. Samsung Electronics fell 2.57 percent to 155,200 won and SK hynix dropped 2.97 percent to 817,000 won earlier in the session. Battery maker LG Energy Solution also edged down 3.54 percent to 381,000 won.
Financial and biotech shares also remained under pressure. Samsung Life Insurance slipped 4.02 percent to 184,000 won, and Samsung Biologics fell 2.76 percent to 1,653,000 won.
Automakers extended the slide, with Hyundai Motor down 4.61 percent at 466,000 won and Kia dropped 2.56 percent at 152,200 won.
Defense and aerospace shares weakened further, with Hanwha Aerospace retreating 6.19 percent to 1,151,000 won.
Shipbuilders joined the broad downturn. HD Hyundai Heavy Industries fell 4.36 percent to 526,000 won, and Hanwha Ocean slid 4.72 percent to 129,200 won.
The Hang Seng Index retreated 1.57 percent to 26,463.87 soon after opening, while China’s Shanghai Composite fell 0.87 percent to 4,040.30, reflecting U.S. and regional losses. The impact was milder for Japan’s Nikkei 225, which lost 0.3 percent to 53,677.22.
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