KOSPI retreats as investors turn cautious ahead of Fed chair's rate clues
Summary
Seoul stocks fell for the first time in four sessions Friday as foreign-led selling and caution ahead of Federal Reserve Chair Kevin Warsh’s Jackson Hole speech pressured the market. The benchmark KOSPI opened at 6,846.54 and closed at 6,788.88, down 1.79 percent. Samsung Electronics and SK hynix both dropped sharply, while the won strengthened against the dollar.
Key Facts
- Foreign investors sold a net 1.76 trillion won worth of shares, and institutional investors sold 284 billion won.
- Retail investors bought a net 425 billion won during the session.
- Samsung Electronics fell 3.38 percent to 257,000 won, while SK hynix dropped 4.45 percent to 1.65 million won.
- The Kosdaq opened at 835.23, closed at 838.41, and ended up 0.09 percent.
- The Korean won closed at 1,372.5 per dollar, up 8.4 won from the previous session.
A stock ticker at Hana Bank's headquarters in Seoul shows the benchmark KOSPI closing at 6,788.88, down 1.79 percent from the previous session, Friday. Yonhap
Seoul stocks fell for the first time in four sessions Friday, as foreign-led selling pressure weighed on the market and investors turned cautious ahead of Federal Reserve Chair Kevin Warsh’s keynote speech at the central bank’s Jackson Hole symposium.
The speech, scheduled for 10 a.m. Friday (local time), is drawing close attention as the market looks for clues about the central bank’s next moves and the conditions that could warrant an interest rate adjustment.
Previous Fed chairs have used the annual gathering in Wyoming to signal broad shifts in monetary policy, but it remains unclear how much guidance Warsh will offer in his first major address at the event.
The benchmark KOSPI opened at 6,846.54, down 0.95 percent from the previous session, and remained in negative territory throughout the day. The index failed to turn higher, ultimately closing at 6,788.88, down 1.79 percent.
Foreign investors led the selling, offloading a net 1.76 trillion won ($1.28 billion) worth of shares, while institutional investors sold 284 billion won. Retail investors moved in the opposite direction, purchasing a net 425 billion won.
The two semiconductor heavyweights declined sharply. Samsung Electronics fell 3.38 percent to 257,000 won, while SK hynix dropped 4.45 percent to 1.65 million won.
The weakness in Seoul came despite a strong showing on Wall Street overnight, where U.S. stocks rallied on Nvidia’s stronger-than-expected earnings and upbeat revenue outlook. The S&P 500 and Nasdaq gained 0.72 percent and 1.57 percent, respectively, while the Philadelphia Semiconductor Index rose 2.33 percent.
For Korean chip stocks, sentiment was also weighed by reports that the Trump administration is considering new tariffs not only on microchips but also on products containing them, including laptops, gaming consoles and data center servers.
“The market is working through selling pressure amid uncertainty over U.S. semiconductor tariffs, while investors await Fed Chair Kevin Warsh’s speech,” said Kang Jin-hyuk, a senior analyst at Shinhan Securities.
The secondary bourse Kosdaq, meanwhile, opened 0.29 percent lower at 835.23 and swung between gains and losses throughout the session before eking out a modest gain, closing at 838.41, up 0.09 percent.
In the Seoul foreign exchange market, the Korean won extended its recent gains against the U.S. dollar, closing at 1,372.5 per dollar, up 8.4 won from the previous session.
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