Seoul: South Korean stocks fell more than 1 percent Monday on losses in big-cap tech shares as investors doubted there will be future rate cuts by the Federal Reserve, given strong data on the U.S. economy. The local currency fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) lost 26.22 points, or 1.04 percent, to close at 2,489.56, extending the losing streak to a second session. Trade volume was moderate at 569.34 million shares worth 8.89 trillion won (US$6.04 billion), with losers outnumbering winners 637 to 261.
Foreign investors were net sellers, offloading 878.67 billion won worth of shares, while retail and institutional investors purchased a net 746.47 billion won and 25.38 billion won, respectively. Lee Kyung-min, an analyst at Daishin Securities, noted that a better-than-expected jobs report indicated a resilient U.S. economy, which may lead the Fed to adopt a cautious approach regarding further interest rate cuts. This uncertainty, coupled with recent market gains, contributed to the projected downturn in the KOSPI.
Tech stocks faced significant pressure, with market leader Samsung Electronics falling 2.17 percent to 54,100 won and chip giant SK hynix decreasing 4.52 percent to 194,300 won. Other notable declines included LG Energy Solution, which dropped 0.29 percent to 347,500 won, and LG Chem, which retreated 1.63 percent to 241,000 won.
The automotive sector also experienced losses, with Hyundai Motor dropping 2.65 percent to 220,000 won and Kia slightly decreasing by 0.19 percent to 105,400 won. Top steelmaker POSCO Holdings saw a decline of 1.91 percent to 257,000 won.
In contrast, major bio shares showed mixed results. Samsung Biologics advanced 1.2 percent to 1,012,000 won, while Celltrion fell 0.7 percent to 183,800 won. Among the gainers, portal operator Naver rose 0.99 percent to 204,000 won, and financial firm KB Financial Group increased by 1.71 percent to 89,300 won.
The local currency was quoted at 1,470.8 won against the greenback at 3:30 p.m., marking a decline of 5.8 won from the previous session.