KOSPI Plunges on Rising Oil Prices and Global Bond Yields
South Korean stocks plummeted on Wednesday as rising oil prices and global bond yields pummeled tech-heavyweights Samsung Electronics (005930.KS) and SK Hynix (000660.KS). The KOSPI sank 2.86% to 6,640.26 by late morning after opening more than 3% lower.
Samsung fell 2.97%, while SK Hynix dropped 3.13%. Other tech giants such as Hyundai Mobis, HD Hyundai Heavy Industries, and Hanwha Aerospace also declined sharply.
The selloff followed a risk-off session on Wall Street and came as Brent crude approached $96 a barrel, reviving inflation and rate concerns.
Korean equities have become unusually sensitive to negative macro variables, particularly oil prices and long-term yields, according to Kiwoom Securities researcher Han Ji-young.
The country's strong AI-memory story has been temporarily overshadowed by macro risk. Brent crude climbed towards $95.91 a barrel after renewed US strikes on Iran raised fears of further disruption around the Strait of Hormuz.