Seoul:Shares in Seoul closed lower on Tuesday, primarily driven by declines in technology stocks as concerns mounted over rising bond yields at multidecade highs. The Korean won, however, appreciated against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) opened higher but eventually fell, closing down 62.35 points, or 0.89 percent, at 6,941.39. Trading volume was light, with 257.27 million shares valued at 19.1 trillion won (US$14.2 billion) exchanged. Decliners outpaced gainers, numbering 459 to 424.

Foreign and institutional investors were net sellers, offloading 1.75 trillion won and 1.98 billion won worth of stocks, respectively, while individual investors purchased a net 740.56 billion won. Market participants are anticipating third-quarter corporate earnings, with rising interest rates, increased energy costs, and renewed inflation concerns contributing to higher global bond yields.

Analysts suggest that investors are likely to maintain a cautious stance until a new policy catalyst or strong corporate earnings results emerge. In Seoul, technology stocks led the downturn, with market leader Samsung Electronics dropping 1.45 percent to 272,000 won, and SK hynix, its chipmaking competitor, declining 3.69 percent to 1.77 million won.

Korea Aerospace Industries, the sole aircraft manufacturer in the country, saw its shares fall 3.22 percent to 129,200 won. On the other hand, LG Electronics experienced a significant gain of 7.64 percent to 232,500 won after securing a long-term agreement to supply chillers for artificial intelligence data centers with a North American company.

Samsung SDI, the second-largest battery maker, rose 8.7 percent to 575,000 won, while leading carmaker Hyundai Motor edged up 0.43 percent to 348,000 won. The Korean won was quoted at 1,343.6 against the U.S. dollar as of 3:30 p.m., slightly stronger than the previous session's close of 1,344 won.