The KOSPI fell below the 7,000-point line for the first time in three days. Rising international oil prices and U.S. long-term bond yields weighed on the market, while caution ahead of the U.S. consumer price index (CPI) report also pushed indices lower.
On the 11th, the KOSPI closed 124.01 points (1.76%) lower than the previous day at 6,909.91. The KOSPI, which traded below the 7,000-point line from the opening of the session, continued its downward trend throughout the day. This marked the first time since the 8th that the KOSPI closed below the 7,000-point mark.
International oil prices rose due to potential military conflict between the United States and Iran, while U.S. long-term bond yields surged sharply. On the 10th (local time), October WTI (West Texas Intermediate) crude oil futures settled at $102.48 per barrel, up $6.43 (6.69%) from the previous trading day on the New York Mercantile Exchange. November Brent crude rose 6.34% to $107.63. Both oil prices reached their highest levels since May 19. The U.S. 10-year Treasury yield recorded 4.9610%, approaching the 5th% threshold.
U.S. stock markets also declined overnight. On the New York Stock Exchange, the S&P 500 index closed 44.62 points (0.58%) lower at 7,591.74 compared to the previous session. The NASDAQ Composite Index ended 171.62 points (0.65%) lower at 26,081.72. The Dow Jones Industrial Average closed 316.56 points (0.60%) lower at 52,064.10 compared to the previous session.
Lee Kyung-min, head of FICC Research at Daishin Securities, stated, "The domestic stock market turned bearish amid rising international oil prices and a sharp increase in U.S. Treasury yields, with caution ahead of the U.S. CPI release on the 11th (local time) further intensifying." He added, "The CPI to be released tonight Korean time will be a key variable determining the direction of financial markets moving forward."
In the KOSPI market, foreign investors and institutional investors sold net amounts of 2.3041 trillion won and 1.2235 trillion won, respectively. Retail investors purchased a net amount of 1.8658 trillion won.
Among KOSPI sectors, electrical and electronics, manufacturing, and medical and precision equipment fell more than 2%, while distribution, metals, chemicals, machinery and equipment, securities, and pharmaceuticals declined by over 1%. In contrast, construction, insurance, real estate, general services, and electricity and gas rose by around 1%.
The executive explained, "Heightened external uncertainties led to a broad downturn across sectors, with the sharp rise in U.S. Treasury yields particularly weighing on growth stocks."
Among the top market capitalization stocks, SK Square fell 4.05%. Samsung Electronics and SK Hynix declined by 3.53% and 2.21%, respectively. LG Energy Solution and Hyundai Motor also dropped by more than 1%. Meanwhile, HD Hyundai Heavy Industries surged 5.62% on news that it plans to build a power generation engine plant and cylindrical reactor vessel production facility in Ulsan. KB Financial Group and Shinhan Financial Group rose 2.6% and 2.36%, respectively.
The KOSDAQ closed at 820.64, down 16.28 points (1.95%) from the previous day.
In the KOSDAQ market, foreign investors and institutional investors sold net amounts of 313.7 billion won and 215.9 billion won, respectively. Retail investors purchased a net amount of 511.7 billion won.
Among KOSDAQ sectors, non-metallic minerals and machinery and equipment fell by around 3%, while electrical and electronics, medical and precision equipment, manufacturing, and finance declined by more than 2%. In contrast, publishing and media rose 2.01%, and entertainment and culture increased by 1.5%. IT (information technology), transportation equipment and parts, and metals closed with a slight gain.
Of the top 20 KOSDAQ stocks by market capitalization, all except PSK Holdings, which rose 1.29%, and Robotis, which closed flat, declined. Wonik IPS and EcoPro BM fell more than 7%, while Juseong Engineering and PSK dropped by around 5%. Alteogen and Samkwang Pharmaceutical declined by more than 3%.
On this day, the won-dollar exchange rate closed the week at 1,345.9 won, up 6.7 won from the previous trading day's closing price.
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