An employee checks the Kospi index and the won-dollar exchange rate at Hana Infinite Seoul in Hana Bank’s headquarters in Seoul’s Jung District on Aug. 8. The Kospi closed at 6,954.52 that day, down 40.87 points, or 0.58%, from the previous session. Photo by Oh Seung-hyun
The KOSPI climbed past 7,170 during the session but surrendered all of its gains in the afternoon, failing to settle above the 7,000 mark. Semiconductor stocks drew momentum after OpenAI unveiled its new artificial intelligence model, Astra, but rising international oil prices tied to Middle East tensions and trade friction between the United States and Canada dragged down appetite for risk assets.
The KOSPI closed at 6,954.52 on the 8th, down 40.87 points, or 0.58%, from the previous session, according to the Korea Exchange. The index opened at 7,045.79, up 50.40 points or 0.72%, and rose as high as 7,171.52 intraday. It was the first time in 15 trading sessions, since the 18th of last month, that the KOSPI traded above 7,000 during a session. The index failed to reclaim the level on a closing basis.
Foreign and institutional investors kept buying. On the main board, foreign investors bought a net 661.6 billion won and institutions a net 649.5 billion won, while retail investors sold a net 3.0533 trillion won. Foreign and institutional investors have bought on a net basis together for four straight sessions, from the 3rd of this month through the 8th. Over that stretch, foreign investors purchased 3.7212 trillion won and institutions 5.9220 trillion won, for combined net buying of 9.6432 trillion won.
The Middle East conflict and trade risks are cited as reasons the index turned lower. Amid the continuing standoff between the United States and Iran, news of a strike on Saudi Arabian oil facilities pushed West Texas Intermediate and Brent crude futures above $93 and $97 a barrel, respectively, during the session. Trade friction between the United States and Canada over retaliatory tariffs also weighed on sentiment, weakening appetite for risk assets.
As a result, the rally in semiconductor stocks that had lifted the index early in the session lost steam. SK hynix (000660.KS) rose as high as 1,889,000 won intraday, reclaiming the 1.8 million won level for the first time since July 27. But it gave back part of those gains in the afternoon to close at 1,793,000 won, up 0.56%. Samsung Electronics (005930.KS) also rose as high as 279,000 won during the session but ended at 269,500 won, down 0.19%.
Most other large-cap stocks turned lower as well. LG Energy Solution (373220.KS) fell 3.86%, Hyundai Motor 2.04%, Samsung Biologics (207940.KS) 1.77% and KB Financial Group (105560.KS) 1.25%. Hanwha Aerospace (012450.KS), which had been strong early in the session, dropped 1.15%. SK hynix was the only large-cap chipmaker to hold on to gains.
The KOSDAQ closed at 811.88, down 10.31 points or 1.25% from the previous session. Retail and foreign investors bought a net 149.0 billion won and 60.7 billion won, respectively, while institutions sold a net 217.7 billion won. Decliners included Alteogen (196170.KQ), down 3.15%; EcoPro (086520.KQ), down 1.70%; EcoPro BM (247540.KQ), down 1.78%; Rainbow Robotics (277810.KQ), down 3.35%; and HLB (028300.KQ), down 3.95%.
U.S. inflation data due later this week is another source of volatility. Caution remains ahead of the release of the U.S. consumer price index for August on the 10th and 11th, and the yen’s climb to a seven-month high, with the dollar-yen rate falling to around 153 yen, adds to the pressure. “With the yen strengthening clearly, concerns about an unwinding of the yen carry trade are also growing,” said Lee Kyoung-min, a researcher at Daishin Securities.
