US Treasury yields jumped, knocking risk appetite and prompting foreign and
institutional investors to sell a combined KRW4.8 tln (~$3.5bn) of Korean
equities. KOSPI closed at 6,471.17, down 5.80% after an intraday low of
6,400.81; retail investors were net buyers of KRW4.6367 tln. Samsung Electronics
and SK Hynix fell more than 7% and 9%, respectively. Foreigners were net sellers
of KRW3.5036 tln, the largest net outflow this month and the biggest single-day
net sale since the 28th of last month (KRW4.5261 tln); institutions net sold
KRW1.3244 tln. Analysts cited Middle East tensions and the US yield spike —
including a rise in the 30-year Treasury yield to 5.33%, its highest since 2007
— and said failure to extend a US-Iran ceasefire lifted oil and inflation
concerns. Higher rates are increasing AI-sector capex pressure and, together
with worries over slow profit improvement at OpenAI and cooling storage-chip
demand, have intensified profit-taking in previously strong chip names, Daishin
Securities said.
