South Korean stocks faced a decline of more than 1% on Thursday as foreign investors sold off local shares. This drop followed a recent surge in tech stocks and news of new U.S. strikes against Iran. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 1.02% to 8,144.38, reversing the record high set the day before at 8,288.7.
The recent rally in major semiconductor shares, such as Samsung Electronics and SK hynix, led the KOSPI to achieve a milestone by crossing the 8,000-point mark. However, the index started on a weak note as blue-chip shares paused their upward trend due to concerns arising from U.S. strikes on an Iranian military site. This development dampened hopes for a quick peace agreement between the two nations.
In the U.S., major indexes closed at record levels on optimism that tensions with Iran could ease following reports of a possible interim deal. The Dow Jones Industrial Average rose by 0.36%, the Nasdaq composite by 0.07%, and the S&P 500 by 0.02%. In Seoul, market leaders like Samsung Electronics saw a 2.12% decline, while SK hynix gained 0.62%. Meanwhile, AI investment firm SK Square experienced a 2.51% drop.
Major shipbuilders, including HD Hyundai Heavy and Hanwha Ocean, faced declines of 4.44% and 7.78%, respectively. Defence company Hanwha Aerospace retreated by 3.38%, and power plant manufacturer Doosan Enerbility contracted by 2.4%. Financial shares were also in the red zone, with KB Financial down by 2.67% and Shinhan Financial losing 2.32%.
On a positive note, battery and auto shares showed strength. LG Energy Solution, a leading battery maker, surged by 14.34% after securing a deal to supply energy storage system batteries to a U.S. company. Samsung SDI, a smaller rival, jumped by 7.14%. Top automaker Hyundai Motor gained 1.17%, with Kia and Hyundai Mobis also recording increases. Samsung Electro-Mechanics climbed by 4.91%.
The Korean won was trading at 1,506.5 won against the U.S. dollar, down 5.3 won from the previous session.
