SEOUL, September 29 (AJP) - South Korean stocks closed lower for a second straight session Tuesday as surging U.S. Treasury yields weighed on sentiment and foreign investors sold heavily, although the KOSPI recovered from a steeper intraday drop.
The benchmark KOSPI fell 18.93 points, or 0.27 percent, to close at 6,870.81. The index opened 0.66 percent lower at 6,844.41, briefly moved into positive territory in morning trading and later fell as much as 1.55 percent before clawing back most of the losses toward the close.
Foreign investors sold a net 2.94 trillion won ($2.17 billion) of KOSPI shares, extending their selling streak to a third session. Retail investors bought a net 1.17 trillion won, while institutions purchased 123.8 billion won ($91 million).
The selling followed another rise in U.S. Treasury yields overnight. The 10-year yield climbed above 5.2 percent and reached its highest intraday level since 2007, while the 30-year yield touched its highest level since 2004. Global equities also came under pressure as higher borrowing costs and oil prices revived concerns that interest rates could remain elevated for longer.
Adding to caution around artificial intelligence shares, OpenAI scrapped the planned October release of GPT-6.1 Astra, a next-generation AI model, after internal testing raised safety concerns.
Despite those headwinds, the KOSPI recovered from a steeper intraday decline toward the close. Buying in major chip shares strengthened further after the regular session.
In KRX after-market trading as of 5:25 p.m., Samsung Electronics was up 1.67 percent at 274,500 won, while SK hynix reversed its regular-session loss to trade 1.02 percent higher at 1,786,000 won.
Other chip-linked shares also advanced in after-market trading. SK Square, the largest shareholder of SK hynix, rose 2.09 percent to 1,123,000 won, while electronic components maker Samsung Electro-Mechanics gained 2.94 percent to 1,543,000 won.
Most other large-cap shares remained lower. LG Energy Solution fell 3.02 percent to 353,000 won, while Hyundai Motor lost 1.27 percent to 350,000 won. Samsung Biologics dropped 1.36 percent to 1,381,000 won.
KB Financial slipped 0.46 percent to 173,400 won, while Samsung Life Insurance fell 1.69 percent to 291,000 won.
The KOSDAQ moved in the opposite direction late in the session, reversing an early decline to close 3.22 points, or 0.38 percent, higher at 849.80. It had opened 0.32 percent lower at 843.87 before turning positive shortly before the close.
Foreign investors sold a net 129.5 billion won of KOSDAQ shares. Retail investors bought a net 147.1 billion won, while institutions purchased 6.6 billion won.
In KRX after-market trading as of 5:25 p.m., biotechnology company Alteogen was up 0.59 percent at 254,000 won. The company develops drug-delivery technologies, including a platform designed to convert intravenous treatments into subcutaneous injections.
Battery materials shares remained weak. EcoPro, the holding company of a battery materials group, fell 3.42 percent to 79,100 won, while cathode materials maker EcoPro BM dropped 4.13 percent to 106,700 won.
Semiconductor equipment stocks extended gains. Jusung Engineering, which makes semiconductor deposition equipment as well as display and solar manufacturing systems, jumped 6.22 percent to 222,000 won.
Wonik IPS, a semiconductor and display equipment maker, climbed 6.17 percent to 130,800 won, while laser-processing equipment maker EO Technics surged 6.94 percent to 501,000 won.
SIMMTECH, which produces printed circuit boards and semiconductor package substrates, gained 3.40 percent to 152,200 won. Leeno Industrial, a maker of semiconductor test probes and IC test sockets, rose 3.79 percent to 73,900 won.
Rainbow Robotics, which develops collaborative and mobile robots, slipped 0.95 percent to 417,500 won, while pharmaceutical and biotechnology company HLB INC. added 0.50 percent to 39,900 won.
The Korean won strengthened to 1,357.60 per dollar as of 5:29 p.m., compared to 1,365.1 in the previous session.
Across the region, mainland Chinese shares bucked the broader weakness after Beijing pledged stronger policy support for growth and the property market.
The Shanghai Composite rose 0.18 percent to 3,830.45. Japan's Nikkei 225 fell 0.60 percent to 65,481.27, while Hong Kong's Hang Seng Index dropped 0.48 percent to 24,523.57.
Investors are now turning to a busy U.S. data calendar later this week. The personal consumption expenditures (PCE) price index is due Wednesday, while the September employment report is scheduled for Friday. Both releases could shape expectations for the Federal Reserve's next move.
AJP Takeaways
- The KOSPI fell 0.27 percent to 6,870.81, extending losses for a second session after falling as much as 1.55 percent intraday.
- Foreign investors sold a net 2.9397 trillion won ($2.17 billion) of KOSPI shares as U.S. Treasury yields climbed to multi-year highs.
- Samsung Electronics and SK hynix strengthened in KRX after-market trading, rising 1.67 percent and 1.02 percent, respectively, as of 5:25 p.m.
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