Lead

South Korean stocks closed lower for a second consecutive session on Wednesday, as foreign investors extended their selling spree focused on chipmakers and other market heavyweights, according to Yonhap News Agency. The benchmark Korea Composite Stock Price Index (KOSPI) lost 62.71 points, or 0.86 percent, to close at 7,208.95, after opening 0.72 percent higher before reversing course within minutes. The index plunged to as low as 7,053.84 at one point during the session.

The decline followed Tuesday's sharp 3.25 percent drop, when the KOSPI fell 244.38 points to close at 7,271.66. That session was marked by extreme volatility, with the index plunging as much as 4.98 percent in the morning before rebounding in the afternoon. Trade volume was moderate at 524.8 million shares worth 37.1 trillion won (US$24.6 billion), with losers far outnumbering winners 706 to 178.

Coverage Comparison

The reporting from Yonhap News Agency, which provided the bulk of coverage, focused on the market's performance and attributed the declines primarily to foreign investor selling and global market trends. Both Tuesday's and Wednesday's reports highlighted the role of foreign investors, who have been net sellers for ten consecutive sessions, according to Yonhap's Wednesday report. The earlier Tuesday coverage noted a ninth consecutive session of net selling.

The reports also pointed to external factors, including U.S. President Donald Trump's comments about postponing a planned attack on Iran and expectations for Nvidia's earnings report. Yonhap quoted an analyst, Han Ji-young, who attributed the selling pressure on semiconductor stocks to profit-taking after a recent rally.

Key Claims

  • The KOSPI fell 0.86 percent on Wednesday to close at 7,208.95, and dropped 3.25 percent on Tuesday to close at 7,271.66, according to Yonhap.
  • Foreign investors sold a net 6.26 trillion won worth of local shares on Tuesday, extending their selling streak to a ninth session, as reported by Yonhap. On Wednesday, foreigners extended their selling to a tenth consecutive session.
  • The South Korean won weakened against the U.S. dollar on Tuesday but gained ground on Wednesday. According to Yonhap's Wednesday report, the won was quoted at 1,506.8 won per dollar at 3:30 p.m., up 1 won from the previous session.
  • Samsung Electronics shares inched up 0.18 percent to close at 276,000 won on Wednesday, after falling 1.96 percent to 275,500 won on Tuesday.
  • U.S. President Donald Trump said he had postponed a planned attack on Iran at the request of Gulf leaders, as reported by Yonhap. This contributed to cautious trading in global markets.
  • Investors awaited Nvidia's earnings report this week, which could influence tech and semiconductor stocks.

Perspectives

Market analyst perspective: Han Ji-young, an analyst quoted by Yonhap, said domestic and global semiconductor stocks are in a phase of profit-taking pressure due to concerns over the pace of a recent rally. He added that intraday volatility is likely to continue.

Investor sentiment: The reports suggest that foreign investors, in particular, have been reducing exposure to South Korean equities amid global uncertainties, including U.S. Treasury yield movements, inflation concerns, and geopolitical tensions in the Middle East.

Corporate developments: Samsung Electronics shares saw a slight uptick on Wednesday after talks with its largest labor union broke down, a day ahead of a planned major strike at the world's largest memory chipmaker, according to Yonhap.