Seoul shares trim earlier gains late Tue. morning as investors lock in gains

Seoul shares pare gains as investors take profits

South Korea's benchmark KOSPI trimmed its early gains late Tuesday morning, trading 48.32 points, or 0.69%, higher at 7,026.26 as of 11:20 a.m., according to Yonhap News Agency. The index had opened 2% higher before profit-taking set in.

Retail investors and institutions sold a net 804.7 billion won (US$570 million) and 219.9 billion won worth of stocks, respectively, while foreigners bought a net 1.07 trillion won, Yonhap reported.

The pullback came as elevated oil prices stoked inflation concerns and prospects for a U.S.-Iran deal dimmed after President Donald Trump said he was not interested in extending an agreement with Iran that was set to expire, according to Yonhap.

Tech and shipping stocks lead gains

In Seoul, tech stocks continued to lead gains. Market bellwether Samsung Electronics rose 0.46%, while its chipmaking rival SK hynix jumped 4.07%, Yonhap reported. Leading refiner SK Innovation climbed 3.11%, and shipping firm HMM surged 6.12%.

Among decliners, top carmaker Hyundai Motor fell 1.77%, and defense giant Hanwha Aerospace declined 1.55%, according to Yonhap.

The Korean won was trading at 1,411.45 won against the U.S. dollar as of 11:20 a.m., up 4.15 won from the previous stock market session's close, Yonhap added. A photo taken on Aug. 18, 2026, showed the dealing room of Hana Bank in Seoul during morning trading hours.

Global markets under pressure from tech and geopolitics

Overnight, the Dow Jones Industrial Average shed 0.51%, while the tech-heavy Nasdaq composite declined 0.32%, Yonhap reported.

Globally, MSCI's global equities gauge lost ground on Monday as weakness in technology stocks offset support from a dip in U.S. Treasury yields and falling oil prices, according to a Reuters report carried by Livemint. Technology led losses among S&P 500 sectors with a 1.6% drop.

Oil prices fell more than $2 per barrel as traders shrugged off U.S. Treasury Secretary Scott Bessent's announcement of an expansion of secondary sanctions on entities and countries with business ties to Iran, the same report said. U.S. crude settled down 2.35% at $85.01 a barrel, and Brent settled down 2.35% at $92.17 a barrel.

Longer-dated U.S. Treasury yields fell following a report that the Treasury Department may tap its cash account to finance increased debt buybacks, according to Livemint.

Samsung's buyback and Alibaba's share sale weigh on sentiment

In Asia, South Korea's Kospi fell 1.4% on Monday after Samsung Electronics said it spent a massive $80 billion to buy back its own shares following weeks of turbulent trading, as reported by CNA, Malay Mail, and The New Indian Express. The chip giant's shares, along with those of rival SK hynix, peaked in June on optimism for the artificial intelligence boom but have since fallen amid investor jitters and a broader tech rout.

Livemint, citing a Reuters report, noted that Samsung Electronics announced a $79 billion shareholder-return plan, a record amount but smaller than investors had expected, and the KOSPI finished down more than 3%.

Chinese tech giant Alibaba also kept focus on the sector after announcing plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI ambitions, as reported by CNA, Malay Mail, The New Indian Express, and Livemint. The firm, known for its open-source "Qwen" AI models, has been ploughing tens of billions of dollars into the technology.

Nvidia earnings and Jackson Hole in focus

Investors are also looking toward Nvidia's quarterly financial report on Wednesday, a bellwether for the AI sector. "The spending machine is still running, but the bill is getting heavier," said Stephen Innes of SPI Asset Management, as quoted by CNA and Malay Mail. "Nvidia must now show that the most expensive investment boom in modern market history can still pay its bills."

Traders are also watching this week's Jackson Hole meeting for clues on U.S. monetary policy, with Livemint reporting that Federal Reserve Chair Kevin Warsh's first speech there is anticipated and traders pricing in a 58% probability of a rate hold in September.

Hong Kong and other Asian markets

Hong Kong's Hang Seng fell more than 2% despite fast-fashion giant Shein announcing its market debut in the Chinese financial hub on September 1, a listing that would value the group at close to $27 billion, as reported by CNA, Malay Mail, and The New Indian Express. Tokyo, Shanghai, Taipei, and Wellington were down on Monday, while Sydney, Jakarta, and Bangkok posted gains, and Manila and Kuala Lumpur were flat, according to those reports.

U.S.-Iran tensions escalate

President Donald Trump billed the U.S. plan to isolate the Iranian economy as the "most crushing" financial operation ever against Tehran, as reported by CNA, Malay Mail, and The New Indian Express. Treasury Secretary Scott Bessent said he would give more details on the economic pressure plan, and the U.S. warned allies and China to join the campaign.

Vice President JD Vance described the plan as a "delicate dance" because Iran will "try to apply economic pressure to us," according to CNA and Malay Mail. Bessent also called on Beijing to "get with the programme" regarding pressure on Iran, CNA reported.

Tariff threats and currency moves

Livemint reported that President Trump on Monday threatened to raise U.S. tariffs on all cars, trucks, and automotive parts from Canada to 50% starting January 1, 2027, and that Canadian Prime Minister Mark Carney said retaliatory Canadian tariffs on U.S. goods would come into effect on September 8. The Canadian dollar weakened 0.56% versus the greenback to C$1.385 per dollar.

The dollar index rose 0.2% to 99.01, with the euro down 0.15% at $1.1662 and the dollar strengthening 0.13% to 139.13 against the Japanese yen, according to Livemint.

Gold and bond markets

Spot gold rose 0.97% to $4,647.29 an ounce, to its highest level in more than three months, while U.S. gold futures rose 1.01% to $4,670.90 an ounce, Livemint reported.

The 10-year Treasury yield fell 3.79 basis points to 4.7%, from 4.738% late on Friday, and the 30-year bond yield fell 4.84 basis points to 5.2276%, the report said. Yields have risen on inflation fears as the U.S. federal debt topped $40 trillion, CNA reported, and the U.S. Treasury bought its own federal government bonds last week to push down borrowing costs after the 30-year yield surged to levels last seen in 2007.