South Korean Shares Extend Losses

The benchmark KOSPI edged down to around 6,880 on Tuesday, extending losses from the previous session as higher oil prices and Treasury yields weighed on risk appetite. The US 10-year Treasury yield climbed above 5.2%, while the 30-year yield rose above 5.5%, both at multi-year highs as renewed Middle East tensions raised concerns about persistent inflation and further interest-rate increases. At the same time, Wall Street closed lower overnight, with the S&P 500, Dow Jones, and Nasdaq all falling nearly 1%. SK hynix edged down 0.3%, while losses were also seen in LG Energy Solution (-3.4%), Hyundai Motor (-1.7%), KB Financial Group (-1.3%), and Hanwha Aerospace (-2.4%). Additionally, weaker domestic business sentiment added to the cautious tone, with the BOK’s business sentiment index falling for the first time in three months in September, while manufacturing sentiment recorded a sharper decline amid concerns over fewer working days, raw material costs, and external uncertainties.