KOSPI Falls Below 6,600 Amid Global Economic Concerns

The South Korean stock market experienced its fourth consecutive decline as global economic concerns weighed heavily on the KOSPI. The index fell to below 6,600 for a brief period amid heightened volatility, but losses were contained due to semiconductor heavyweights limiting their declines.

The KOSPI closed at 6,600, down 66.25 points or 1.0% from the previous session. Foreign investors sold a net 1.5 trillion won (approximately $1.1 billion), while institutions offloaded approximately 900 billion won (approximately $660 million). Retail investors stepped in with net purchases exceeding 800 billion won (approximately $590 million) to defend the index.

The decline was driven by surging US Treasury yields and Middle East-driven oil supply concerns, which saw international oil prices climb to $102.33 per barrel. The Philadelphia Semiconductor Index plummeted more than 5%, weighing on technology stocks broadly.

Market participants are closely watching the FOMC outcome, Middle East developments, and the trajectory of the AI investment debate. Analysts noted that semiconductor heavyweights had already absorbed much of the shock from the 'AI investment slowdown' narrative the previous day, limiting additional downside.