KOSPI Falls Amid US Rate Surge as Semiconductor Stocks Show Resilience
South Korea's KOSPI index closed lower for the second consecutive day, weighed down by surging US Treasury yields that hit a 2007 high of 5.293%. Despite this, semiconductor stocks such as Samsung Electronics and SK Hynix showed resilience on bargain hunting, with the Philadelphia Semiconductor Index rising 1.32%.
The KOSPI ended down 18.93 points (0.27%) at 6,870.81, marking its second straight day of declines due to persistently high US Treasury yields. Foreign investors were net sellers, offloading 2.9033 trillion won and driving the index lower.
The surge in interest rates was fueled by hawkish remarks from Federal Reserve Governor Michael Barr and a rise in inflation expectations, which increased from 5.8% to 6.1%. Despite a drop in the September US Consumer Confidence Index (81.9, lowest since 2014) and a decrease in August job openings, rates continued to climb, dampening investor sentiment.