South Korean Shares Edge Lower on Inflation Concerns
The benchmark KOSPI edged down to around 6,950 on Friday, reversing gains from the previous session as concerns over domestic inflation and elevated global bond yields weighed on the index. Korea’s CPI held at 2.9% in September, while the BOK warned that inflation could stay around 3% in October, raising the prospect of another rate hike. At the same time, US Treasury yields stayed high after the 10-year yield briefly topped 5.3%, while oil prices climbed above $100 a barrel amid renewed Middle East tensions, adding to inflation risks. However, stronger-than-expected results and an upbeat memory outlook from Micron provided a positive read-through for Samsung Electronics and SK hynix, while record South Korean semiconductor exports reinforced the sector’s strong outlook. Large-cap stocks were mixed, with losses seen in Samsung C&T Corp (-1.4%), Doosan Enerbility (-0.85%), and HD Hyundai Heavy Industries (-1.0%), while Samsung Electronics and SK Square edged higher.
The benchmark KOSPI edged down to around 6,950 on Friday, reversing gains from the previous session as concerns over domestic inflation and elevated global bond yields weighed on the index. 9% in September, while the BOK warned that inflation could stay around 3% in October, raising the prospect of another rate hike. 3%, while oil prices climbed above $100 a barrel amid renewed Middle East tensions, adding to inflation risks. However, stronger-than-expected results and an upbeat memory outlook from Micron provided a positive read-through for Samsung Electronics and SK hynix, while record South Korean semiconductor exports reinforced the sector’s strong outlook.
0%), while Samsung Electronics and SK Square edged higher.