KOSPI falls as investors remain cautious ahead of chip earnings
Summary
The KOSPI fell 1.46 percent in Seoul on Monday as renewed Middle East tensions pushed oil prices higher and investors awaited chipmakers’ earnings. Foreign investors sold a net 6.955 trillion won in shares, while institutional and retail investors were net buyers. SK hynix and Samsung Electronics were scheduled to report third-quarter results Wednesday and Thursday, respectively. Investors were also watching the U.S. Federal Reserve’s policy meeting and major U.S. technology companies’ earnings.
Key Facts
- The KOSPI closed at 5,469.47, down 80.83 points from the previous session.
- Brent crude futures hovered around $115 a barrel after rising about 6 percent the previous week amid concerns about energy-supply disruptions.
- Microsoft and Alphabet were scheduled to report results Wednesday local time, followed by Amazon, Intel and Sandisk on Thursday.
- The Kosdaq fell 3.26 percent to 727.21, while the won-dollar exchange rate closed at 1,323.1 won per dollar.
- The Federal Reserve’s policy meeting was scheduled for Tuesday and Wednesday; the article said it was widely expected to leave interest rates unchanged.
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.
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