Seoul's stock market experiences decrease, driven by uncertainties surrounding US tariffs and Federal Reserve policy decisions.
South Korean Stock Market Endures Losses Amid Uncertainty
The South Korean stock market experienced a decline on Wednesday, with the benchmark Korea Composite Stock Price Index (KOSPI) losing 1.05 percent to finish at 3,413.40. The index opened lower and fell further due to investors taking a cautious approach after sharp gains over the previous 11 consecutive sessions.
Trade volume was moderate, with a total of 321.95 million shares worth 11.11 trillion won ($8.04 billion) traded. Losers outnumbered winners, with 566 stocks declining compared to 302 that advanced.
In the tech sector, Samsung Electronics, the world's largest smartphone maker, lost 1.51 percent to 78,200 won. The company's shares were affected by US President Donald Trump's remarks hinting at the possibility of imposing higher tariffs on semiconductors and pharmaceuticals. Other semiconductor stocks, such as SK hynix, also felt the impact, with SK hynix sinking 4.17 percent to 333,500 won.
However, not all tech stocks ended the day in the red. LG Electronics, a major player in the electronics industry, saw its shares advance 1.39 percent to 292,000 won. LG Energy Solution, a subsidiary focusing on electric vehicle batteries, edged up 0.14 percent to 350,000 won.
The financial sector also saw mixed results. KB Financial Group grew 0.42 percent to 118,300 won, while Samsung Biologics fell 1.54 percent to 1,020,000 won.
In the automotive sector, Hyundai Motor went up 0.47 percent to 216,000 won, while Kia retreated 0.39 percent to 101,000 won. HD Hyundai Heavy also saw a slight increase, gaining 0.6 percent to 506,000 won.
Eyes are on the Federal Reserve's rate-setting meeting, where the US central bank is expected to cut its benchmark interest rate on Wednesday for the first time this year. Uncertainty over the Fed's meeting added further pressure to the Korean stock market.
In other news, the new CEO of Samsung Electronics, following the resignation of Chairman Kim Ki-nam in April 2021, was not identified in the provided search results.
Meanwhile, Hanwha Ocean surged 1.99 percent to 113,000 won, while Hanwha Aerospace dipped 1.06 percent to 1,030,000 won. Posco Holdings increased 0.53 percent to 283,500 won, and Naver went down 0.64 percent to 233,500 won.
Retail investors bought a net 250.09 billion won worth of shares, while foreigners and institutions sold a net 35.22 billion and 306.3 billion won worth of shares, respectively.
Overall, the South Korean stock market faced challenges on Wednesday due to various factors, including uncertainty over the Fed's meeting and geopolitical tensions. Investors will closely watch the developments in these areas in the coming days.
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