South Korean stocks closed lower, breaking a three-day rise streak, as investors awaited a U.S. rate-setting meeting amidst geopolitical uncertainties in Iran. The Korean won strengthened against the U.S. dollar, and the tech-heavy KOSDAQ index surged over 7 percent, surpassing 1,000 for the first time in four years, as reported by Yonhap news agency.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 0.81 percent, losing 40.48 points to settle at 4,949.59. Despite recent gains pushing the KOSPI above 5,000 points, it has not yet closed above this significant mark. Trade volume stood at 438 million shares valued at 22.5 trillion won (US$15.6 billion), with winners outnumbering losers significantly at 502 to 391.
Investors adopted a cautious stance awaiting key events this week, including the Federal Reserve’s rate decision and the fourth-quarter earnings reports from major companies like Samsung Electronics and SK hynix. Geopolitical tensions between the U.S. and Iran, coupled with U.S. interests in Greenland, added to investor concerns.
Analysts noted that the positive outlook for semiconductor shares’ fourth-quarter earnings had largely been factored into recent gains. Han Ji-young, a researcher at Kiwoom Securities, emphasized the importance of companies’ conference calls in revealing plans for HBM4 chips and general-purpose memory supply.
Samsung Electronics closed unchanged at 152,100 won, while SK hynix, the second-largest chipmaker, saw a 4.04 percent decline to 736,000 won. Hyundai Motor, a leading carmaker, dropped by 3.43 percent to 492,500 won, and its affiliate Kia fell by 3.51 percent to 155,200 won. Financial firms also ended lower, with KB Financial down 0.07 percent at 135,500 won and Shinhan Financial decreasing by 1.79 percent to 82,400 won.
The KOSDAQ index, a secondary market, surged by 7.09 percent to close above 1,000 for the first time in over four years.
