Seoul:Seoul shares closed lower on Monday, mirroring Wall Street's losses, as investors exercised caution ahead of significant third-quarter earnings reports from major chipmakers and an upcoming interest rate decision from the U.S. Federal Reserve.
According to Yonhap News Agency, the Korean won appreciated against the U.S. dollar. The Korea Composite Stock Price Index (KOSPI) opened 0.92 percent down and continued to decline, ending the day with a loss of 80.83 points, or 1.46 percent, at 5,469.47. The trading volume was relatively low, with 190.46 million shares exchanged, valued at 12.01 trillion won (approximately US$9.08 billion). Declining stocks heavily outnumbered advancing ones, with 790 losers to 101 gainers.
On the previous Friday, the Dow Jones Industrial Average decreased by 1.23 percent, and the Nasdaq Composite saw a decline of 0.21 percent. Investors are now focused on the upcoming earnings reports from SK hynix and Samsung Electronics, scheduled for Wednesday and Thursday, respectively, which are expected to provide insights into AI chip demand and memory pricing trends. Additionally, market participants are closely watching the Federal Reserve's two-day policy meeting starting Tuesday, as the central bank is anticipated to maintain interest rates amid ongoing inflation concerns.
Foreign investors sold a net 695.5 billion won in stocks, whereas institutional and individual investors purchased 611 billion won and 47 billion won, respectively. In Seoul, most large-cap stocks recorded declines, with Samsung Electronics dropping 1.16 percent to 213,000 won and SK hynix decreasing by 0.16 percent to 1.28 million won. Hyundai Motor and Hanwha Aerospace experienced notable declines of 2.54 percent and 4.04 percent, respectively. Conversely, Jeju Air saw a rise of 0.96 percent to 5,250 won, and LG Display climbed 2.38 percent to 7,320 won.
The Korean won was valued at 1,323.1 won against the U.S. dollar as of 330 p.m., slightly stronger than the previous session's close of 1,324.6 won. Bond prices increased, with the yield on three-year Treasurys dropping 1.4 basis points to 3.789, and the return on five-year government bonds falling 1.6 basis points to 3.932.