KOSPI falls as investors remain cautious ahead of chip earnings
The won-dollar exchange rate, benchmark KOSPI and Kosdaq indexes are displayed at Hana Bank's dealing room in Seoul, Monday. The benchmark index closed at 5,469.47, down 1.46 percent, or 80.83 points, from the previous session. Yonhap
The benchmark KOSPI fell Monday as renewed tensions in the Middle East sent oil prices higher, while investors remained cautious ahead of earnings announcements from Korea's major chipmakers later this week.
The KOSPI closed at 5,469.47, down 1.46 percent, or 80.83 points, from the previous session.
Foreign investors sold a net 6.955 trillion won ($5.26 billion) worth of shares, while institutional and retail investors bought a net 6.11 trillion won and 474 billion won, respectively.
Blue-chip stocks also closed lower. SK hynix fell 2,000 won to 1,275,000 won, while Samsung Electronics dropped 2,500 won to 213,000 won.
Renewed tensions in the Middle East weighed on investor sentiment, with reports that U.S. President Donald Trump was considering resuming strikes on Iran, fueling concerns over escalating conflicts.
Brent crude futures hovered around $115 a barrel after rising about 6 percent last week on fears of disruptions to energy supplies.
Investors also turned cautious ahead of earnings reports from Korea's two major chipmakers. SK hynix is scheduled to report its third-quarter results Wednesday, followed by Samsung Electronics on Thursday.
Major U.S. technology companies are also due to report results this week, offering a gauge of whether artificial intelligence (AI)-related revenue and profits are keeping pace with heavy spending on data centers and other infrastructure. Microsoft and Alphabet are scheduled to report Wednesday (local time), followed by Amazon, Intel and Sandisk on Thursday.
"The market's main concern is no longer the growth potential of the AI industry itself, but whether massive capital spending can translate into actual revenue and profits. If monetization lags, or uncertainty grows over future semiconductor demand, selling pressure could persist," said Han Ji-young, an analyst at Kiwoom Securities.
The U.S. Federal Reserve's policy meeting set for Tuesday and Wednesday is another focus for investors. While the Fed is widely expected to leave interest rates unchanged, its policy outlook could influence market expectations.
Meanwhile, the secondary bourse Kosdaq fell 3.26 percent to close at 727.21, down 24.48 points from the previous session.
On Seoul's foreign exchange market, the won-dollar exchange rate closed at 1,323.1 won per dollar, down 1.5 won from the previous session.