KOSPI drops 0.91% as chip weakness, oil and yields weigh

South Korea's KOSPI fell in early trading on the 11th as weaker U.S. semiconductor shares, higher oil prices and rising U.S. Treasury yields pressured risk appetite. By 10:05 a.m., the index stood at 6,242.28, down 57.38 points, or 0.91%, after opening at 6,240.06, off 59.60 points, or 0.95%, according to the Korea Exchange. Individuals bought a net 212.9 billion won and foreign investors added a net 5.1 billion won, while institutions sold a net 206 billion won, led by financial investment firms with 233.6 billion won in net sales; pension funds bought a net 50.7 billion won. Large-cap shares were mostly lower, with SK hynix sliding 2.89%, Samsung Electro-Mechanics dropping 5.73% and SK Square losing 3.27%, while Samsung Electronics was unchanged and Samsung Biologics rose 2.36%. The move followed a softer Wall Street session in which Nvidia fell 2.86%, Micron lost about 1.8%, the Philadelphia Semiconductor Index dropped 2.94% and Intel sank 4.06% after announcing a $15 billion rights offering (sale of new shares to raise capital) for artificial intelligence chip investment. Oil and bond yields also climbed as doubts grew over U.S.-Iran talks on reopening the Strait of Hormuz, sending West Texas Intermediate crude up 5.1% to $82.13 a barrel and pushing the U.S. 10-year Treasury yield above 4.7% ahead of this week's U.S. July consumer price index. Han Ji-young, an analyst at Kiwoom Securities, said the market may see rotation across market caps and sectors as investors take short-term profits in recently strong small- and mid-cap names, while upside support for the KOSPI could still come from U.S. tech earnings and expectations for shareholder returns from domestic chip stocks.

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KOSPI drops 0.91% as chip weakness, oil and yields weigh - CoinPost Terminal