Seoul Stocks Open Lower as Investors Take Profits

South Korean stocks opened lower on Monday, with the benchmark KOSPI slipping in early trading as investors locked in gains from large-cap chip stocks. The index was down 0.73 percent, or 50.77 points, at 6,862.18 within the first minute of trading, according to Yonhap News and The Korea Times.

The decline came after the KOSPI closed above 6,900 points on Friday, prompting profit-taking in the semiconductor sector. Investors are closely watching the upcoming earnings release from U.S. chip giant Nvidia for clues about the future direction of the artificial intelligence market, which has been a key driver of recent gains.

Wall Street Gains Fail to Lift Sentiment

Despite the cautious start in Seoul, major U.S. indexes closed higher last week. The S&P 500 and the tech-heavy Nasdaq both rose 0.43 percent, according to reports. The gains came even as U.S. government bond yields increased, with investors engaging in bargain hunting.

However, the positive Wall Street performance was not enough to sustain Seoul's momentum, as investors chose to sit on the sidelines ahead of several key events this week.

Key Events Ahead: Jackson Hole and Bank of Korea Meeting

Market participants are also keeping an eye on the Jackson Hole meeting of the U.S. Federal Reserve, as well as the upcoming policy meeting of the Bank of Korea. These events are expected to provide further direction on monetary policy, which could influence investor sentiment in the coming days.

Mixed Performance Among Top Caps

Trading among major stocks was mixed. Samsung Electronics shed 5.33 percent, while its industry rival SK hynix added 2.02 percent. Top carmaker Hyundai Motor inched up 0.24 percent, and defense giant Hanwha Aerospace advanced 1.84 percent. KB Financial shed 2.43 percent.

The Korean won was quoted at 1,383.8 won against the U.S. dollar, up 2.2 won from the close of the previous stock trading session.