South Korean Shares Extend Decline on Chip Outlook
The benchmark KOSPI edged lower to around 6,910 on Wednesday, extending losses from the previous session as concerns over the sustainability of the semiconductor earnings boom and elevated global bond yields weighed on sentiment. Investors remained cautious ahead of Samsung Electronics' preliminary third-quarter earnings report on Thursday, with attention focused on whether strong memory-chip demand and pricing can last into 2027 and 2028. At the same time, US Treasury yields remained elevated despite retreating from multidecade highs, keeping pressure on equity valuations. Losses were seen in SK hynix (-0.9%), Hyundai Motor (-1.8%), Hanwha Aerospace (-2.5%), HD Hyundai Heavy Industries (-3.3%), and Kia Corporation (-1.3%). Meanwhile, oil prices fell amid recovering Middle Eastern exports and a planned G7 release of strategic reserves. South Korea's stronger coverage of November crude oil supplies also reduced concerns over potential energy disruptions.
The benchmark KOSPI edged lower to around 6,910 on Wednesday, extending losses from the previous session as concerns over the sustainability of the semiconductor earnings boom and elevated global bond yields weighed on sentiment. Investors remained cautious ahead of Samsung Electronics' preliminary third-quarter earnings report on Thursday, with attention focused on whether strong memory-chip demand and pricing can last into 2027 and 2028. At the same time, US Treasury yields remained elevated despite retreating from multidecade highs, keeping pressure on equity valuations. 3%).
Meanwhile, oil prices fell amid recovering Middle Eastern exports and a planned G7 release of strategic reserves. South Korea's stronger coverage of November crude oil supplies also reduced concerns over potential energy disruptions.