On the 11th, the KOSPI fell below the 7,000-point mark for the first time in three days amid rising international oil prices and a surge in U.S. long-term bond yields. With the U.S. consumer price index (CPI) set to be released tonight Korean time, market attention is now expected to shift toward the U.S. Federal Open Market Committee (FOMC) meeting scheduled for the 15th–16 local time.
On this day, the KOSPI closed at 6,909.91, down 124.01 points (1.76%) from the previous session.
International oil prices rose due to armed conflict between the U.S. and Iran, while U.S. long-term bond yields surged sharply. On the 10th local time at the New York Mercantile Exchange, WTI (West Texas Intermediate) crude oil futures for October delivery closed up $6.43 (6.69%) from the previous trading day at $102.48 per barrel. November Brent crude rose 6.34% to reach $107.63. Both oil prices hit their highest levels since May 19. The U.S. 10-year Treasury bond yield recorded 4.9610%, approaching the 5th% threshold.
U.S. stock markets also declined overnight. At the New York Stock Exchange, the S&P 500 index closed down 44.62 points (0.58%) at 7,591.74, while the NASDAQ Composite Index fell 171.62 points (0.65%) to end at 26,081.72. The Dow Jones Industrial Average closed down 316.56 points (0.60%) 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 due to surging international oil prices and U.S. Treasury yields, with heightened caution ahead of the U.S. CPI release on the 11th local time." He added, "The CPI data to be released tonight Korean time will be a key variable in gauging the direction of financial markets going 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, electricity & electronics, manufacturing, and medical & precision equipment declined by more than 2%, while distribution, metals, chemicals, machinery & equipment, securities, and pharmaceuticals fell over 1%. In contrast, construction, insurance, real estate, general services, and electricity & gas rose by around 1%.
The executive explained, "Heightened external uncertainties led to broad weakness across sectors, with the sharp rise in U.S. Treasury yields particularly weighing on growth stocks."
Among the top market capitalization stocks in KOSPI, 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 more than 1%. On the other hand, 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 by 2.6% and 2.36%, respectively.
The KOSDAQ closed at 820.64, down 16.28 points (1.95%) from the previous session.
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 bought a net amount of 511.7 billion won.
Among KOSDAQ sectors, non-metallic minerals and machinery & equipment fell by around 3%, while electricity & electronics, medical & precision equipment, manufacturing, and finance declined more than 2%. In contrast, publishing & media rose 2.01%, and entertainment & culture gained 1.5%. IT (information technology), transportation equipment & parts, and metals closed with slight gains.
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 saw share prices drop more than 7%, while Juseong Engineering and {PSK} fell around 5%. AlteoGen and Samkwang Pharmaceutical each declined by over 3%.
On this day, the won/dollar exchange rate closed at 1,345.9 won per dollar, up 6.7 won from the previous trading day's closing price, concluding weekly trading.
Im Jeong-eun, a researcher at KB Securities, said, "Next week will see the FOMC and Bank of Japan (BOJ) monetary policy meetings," adding, "Investors should pay close attention to sensitivity to external variables resulting from major events and stock market volatility."
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