Seoul Stocks End Three Day Rally Amid Tech Slump

The benchmark Korea Composite Stock Price Index (KOSPI) closed down 123.49 points, or 1.79 percent, to 6,788.88 on Friday, snapping a three day winning streak. Investors sold off tech heavyweights amid external uncertainties, including reports that the Donald Trump administration is weighing a new round of tariffs on semiconductors. Market top cap Samsung Electronics fell 3.38 percent to 257,000 won, and SK hynix shed 4.45 percent to 1,653,000 won. Additionally, bio firm Samsung Biologics fell 6.65 percent to 1,486,000 won following the announcement of a 3 trillion won rights offering.

Market analysts attributed the dampened sentiment to a wait and see approach ahead of the Jackson Hole meeting, where U.S. Fed Chair Kevin Warsh is scheduled to deliver his first keynote speech. Other contributing factors included statements from the Trump administration that the United States and Iran are not currently in talks to end the war. While tech shares declined, cosmetics firm APR rose 6.21 percent and refiner S-Oil rose 9.14 percent, the latter boosted by re escalating tensions in the Middle East.

Trade volume was light at 287.6 million shares worth 19.9 trillion won. Foreign and institutional investors were net sellers, offloading a combined 2 trillion won, while retail investors were net buyers of 424.36 billion won. In currency markets, the Korean won rose 8.4 won against the U.S. dollar to 1,372.5 won. Bond prices closed lower, with the yield on three year Treasurys rising 3.3 basis points to 3.788 percent.