The KOSPI index fell to the 6,500 range due to concerns over a potential interest rate hike by the U.S. Federal Reserve in September, but later recovered to the 6,600 level. Foreign and institutional investors continued to sell, with major semiconductor stocks like Samsung Electronics and SK Hynix showing weakness.
As of 11:09 a.m. on August 31, the KOSPI was down 122.42 points (1.80%) at 6,666.46. It had briefly dropped to 6,547.76 before partially recovering.
In the securities market, foreign and institutional investors sold a net 459.7 billion won and 601.2 billion won, respectively, while individual investors bought a net 512.8 billion won.
Among the top market capitalization stocks, Samsung Electronics and SK Hynix were trading at 251,750 won and 1,622,000 won, respectively, both showing declines. Other stocks like Doosan Enerbility and Naver also fell, while Samsung SDI saw an increase.
The KOSDAQ index also experienced a downturn, recording a drop of 24.98 points (2.98%) to 813.43 at the same time. Individual investors purchased a net 297.6 billion won, while foreign and institutional investors sold a net 137.6 billion won and 158.2 billion won, respectively.
The domestic stock market opened lower following hawkish comments from Kevin Warsh, Chair of the U.S. Federal Reserve. Warsh expressed concerns about inflation during the Jackson Hole meeting, raising the likelihood of a rate hike in September. Additionally, the Philadelphia Semiconductor Index fell 3.47% on August 28, adding pressure on domestic semiconductor stocks.
Lee Kyung-min, a researcher at Daishin Securities, stated, "Geopolitical tensions are rising again as U.S. forces conducted airstrikes on two rocket launch sites of the Islamic Revolutionary Guard Corps (IRGC) on the southern Hormuz Island in Iran. Given that the IRGC has warned of immediate retaliation, it is important to monitor the situation closely."
He added, "China's largest DRAM manufacturer, Changxin Memory Technologies (CXMT), has filed a lawsuit against the U.S. Department of Defense to invalidate its designation as a military enterprise. The semiconductor conflict between the U.S. and China continues amid restrictions on global market access."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.