Market Overview
South Korean financial markets experienced mixed movements on Thursday as investors reacted to escalating geopolitical tensions in the Middle East. The KOSPI index slipped 0.40% or 11.85 points, closing at 2,960.34 after an initial higher open.
Market sentiment remains fragile, with investors cautious over the potential entry of the United States into the Israel-Iran conflict, now in its seventh day. U.S. President Donald Trump’s ambiguous comments have left markets globally on edge, impacting risk assets across Asia, including South Korea.
Sector Performance & Key Movers
Despite broader market weakness, South Korean tech stocks continued to show resilience:
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Naver Corp surged 4.11%
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Kakao Corp rallied 10.14% amid policy optimism related to the digital economy
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Samsung Electronics fell 0.67%
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SK Hynix closed flat
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LG Energy Solution dipped 0.86%
In the automobile sector:
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Hyundai Motor edged up 0.49%
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Kia Corp slipped 0.71%
Other notable movements included:
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POSCO Holdings: flat
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Samsung BioLogics: -0.60%
Overall, 592 shares declined while 302 advanced, out of 934 issues traded.
Foreign Outflows and Currency Pressure
Foreign investors were net sellers, offloading shares worth 213.9 billion won (approx. $154.8 million). The South Korean won weakened by 0.69%, settling at 1,381.9 per U.S. dollar, compared to its previous close at 1,372.3.
Currency volatility has been a persistent theme amid geopolitical risk, pushing investors to seek safety in the U.S. dollar.
Bond Market Stability
In the debt market, yields remained relatively stable:
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3-year treasury bond futures (September): unchanged at 107.11
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3-year yield: up 0.4 bps to 2.473%
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10-year yield: down 0.1 bps to 2.875%
The Ministry of Finance has assured that it is closely monitoring market developments and stands ready to intervene if volatility escalates.
PSX Rebounds Sharply as KSE-100 Surges Over 1,100 Points Amid Diplomatic Boost, Sector-Wide Buying
Conclusion
Thursday’s market action in South Korea underscores the fragility of investor sentiment amid external shocks. While tech stocks provided a silver lining, foreign outflows and currency weakness reflect broader caution. The situation in the Middle East and its global financial spillovers will remain the dominant narrative in the near term, with investors advised to tread carefully.
