SEOUL, April 17 (AJP) - Korean stocks closed lower Friday, retreating from recent highs as foreign investors led broad-based selling. Lingering geopolitical uncertainty continued to cap risk appetite despite signs of potential de-escalation in the Middle East.
Other Asian markets also traded lower, with Japan’s Nikkei 225 falling 1.21 percent, Hong Kong’s Hang Seng Index dropping 1.2 percent, and China’s Shanghai Composite edging down 0.2 percent.
The benchmark KOSPI fell 0.6 percent to close at 6,191.9, after trading between a high of 6,230.32 and a low of 6,159.88.
Foreign investors drove the decline, offloading 1.99 trillion won ($1.34 billion) worth of shares. Retail investors bought 1.44 trillion won, while institutions added 150.1 billion won, indicating continued dip-buying against external outflows.
The pullback came as investors reassessed the sustainability of the recent rally, with mixed signals emerging around U.S.-Iran negotiations and a temporary truce between Israel and Lebanon failing to fully stabilize sentiment.
Large-cap stocks were broadly weaker, led by semiconductors. Samsung Electronics fell 0.7 percent to 216,000 won, while SK hynix dropped 2.3 percent to 1,128,000 won, reflecting cautious positioning despite overnight gains in the Philadelphia Semiconductor Index.
Defense and industrial names also came under pressure. Hanwha Aerospace slid 6.3 percent, and Doosan Enerbility lost 2.1 percent, reflecting profit-taking following recent strength in defense-linked plays.
Automakers, however, provided limited support. Hyundai Motor rose 0.8 percent, and Kia gained 0.8 percent.
Among notable movers, Hanwha Engine surged 16.4 percent to 56,100 won on expectations of earnings growth tied to expanding orders and improving profitability in marine engine segments. The rally was further supported by optimism over the shipbuilding supercycle and strategic overseas acquisitions aimed at strengthening its position in eco-friendly vessel markets.
STX Engine also hit its daily upper limit, driven by strong demand tied to defense exports and shipbuilding expansion.
Sector-wise, gains were concentrated in selective themes. Venture investment firms jumped 7.7 percent, while electronics equipment and display panel stocks rose 4.1 percent and 3.9 percent, respectively, highlighting rotation into mid-cap growth plays.
The KOSDAQ outperformed, rising 0.6 percent to close at 1,170.04, supported by heavy buying from foreign and institutional investors, who added 15.8 billion won and 9.1 billion won, respectively. Retail investors bought a modest 2.5 billion won.
Biotech and secondary battery names showed mixed performance.
Meanwhile, COVID-19-related stocks gained amid renewed concerns over the global spread of emerging variants, including BA.3.2, supporting selective strength in healthcare names.
However, the move was largely thematic and had limited impact on broader market direction.
The Korean won weakened against the dollar, trading at 1,483.1 won, down 0.2 percent from the previous session, reflecting sustained external pressure amid foreign outflows.
Oil prices edged lower, with Brent crude falling 0.7 percent to $98.7 per barrel and WTI declining 1 percent to $93.7, as optimism over potential negotiations offset ongoing concerns over supply disruptions in the Strait of Hormuz.
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