South Korean Shares Fall Amid Middle East Uncertainty
The benchmark KOSPI fell nearly 2% to around 6,950 on Monday, reversing gains from the previous session, as renewed uncertainty over the Middle East and higher oil prices weighed on risk appetite. Brent crude rose above $105 a barrel after the US rejected Iran’s conditional proposal concerning the Strait of Hormuz. Additionally, the rise in US Treasury yields, with the 10-year yield approaching 5.17%, raised concerns over tighter global financial conditions and further rate hikes. Samsung Electronics and SK hynix declined nearly 4% and more than 4%, respectively, along with losses in SK Square (-6.0%), Samsung C&T (-3.7%), SK Inc (-4.6%), and Hyosung Heavy Industries (-2.3%). Meanwhile, strong semiconductor earnings prospects provided some offset, with Samsung Electronics expected to post more than KRW 100 trillion in third-quarter operating profit and the semiconductor sector’s business sentiment reaching a record high for the fourth quarter.
The benchmark KOSPI fell nearly 2% to around 6,950 on Monday, reversing gains from the previous session, as renewed uncertainty over the Middle East and higher oil prices weighed on risk appetite. Brent crude rose above $105 a barrel after the US rejected Iran’s conditional proposal concerning the Strait of Hormuz. 17%, raised concerns over tighter global financial conditions and further rate hikes. 3%).
Meanwhile, strong semiconductor earnings prospects provided some offset, with Samsung Electronics expected to post more than KRW 100 trillion in third-quarter operating profit and the semiconductor sector’s business sentiment reaching a record high for the fourth quarter.