Seoul:South Korean stocks fell for the sixth straight session on Wednesday due to ongoing concerns about excessive spending on artificial intelligence (AI), with investors also remaining cautious ahead of upcoming U.S. inflation data. Meanwhile, the Korean won appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 26.54 points, or 0.44 percent, closing at 6,008.81 after a day of volatile trading. This marks a continued decline since the previous Tuesday, including a significant 5.46 percent drop on the preceding day.
Initially, the index opened 0.44 percent higher, climbing 2.57 percent around 934 a.m. following remarks from New York Fed President John Williams, who indicated no need for further monetary tightening next year. However, these gains were undone after Dutch tech company ASML's lower-than-expected sales forecast. Despite strong third-quarter earnings, ASML's revised 2026 sales outlook failed to meet market expectations, affecting its stock price.
"The KOSPI erased all of its gains after ASML's earnings report," noted Seo Sang-young, a senior analyst at Mirae Asset Securities. "Investors are also awaiting U.S. consumer prices data later in the day." The trade volume was moderate, with 350.8 million shares valued at 19.9 trillion won (approximately US$14.9 billion), and gainers outnumbering decliners 502 to 369.
Foreign investors and individuals sold a net 1.18 trillion won and 309.3 billion won worth of stocks, respectively, while institutions bought a net 808.3 billion won. Semiconductor stocks closed lower, with SK hynix down 1.66 percent to 1.42 million won and Hanmi Semiconductor dropping 5.02 percent to 217,500 won. Samsung Electronics remained steady at 232,000 won.
Bank shares were weak, with Hana Financial Group falling 2.25 percent to 121,600 won and KB Financial Group decreasing 1.97 percent to 159,200 won. Lotte Shopping saw a 4.47 percent decline to 89,800 won, while Samyang Foods, famous for its Buldak ramyeon series, fell 2.47 percent to 1.14 million won.
Conversely, LG Energy Solution increased 2.93 percent to 422,000 won, and SK Innovation rose 4.08 percent to 163,200 won. CJ ENM soared 6.9 percent to 37,950 won, and cosmetics manufacturer APR grew 4.06 percent to 294,500 won.
The Korean won was quoted at 1,338.3 against the U.S. dollar at 330 p.m., an increase of 6.8 won from the previous session's close. Bond prices fell, with the yield on three-year Treasurys rising 2.6 basis points to 3.883 and the five-year government bonds yield increasing 1.7 basis points to 4.047.