KOSPI Tumbles Over 3% Amid U.S. Rate and BOJ Tightening Fears
The Korea Stock Price Index (KOSPI) plummeted over 3% on September 14, breaching the 6,700 level. The decline was largely due to concerns over U.S. inflation and interest rates, as well as caution over additional tightening from the Bank of Japan (BOJ). Foreign and institutional investors sold stocks in tandem, while retail investors tried to stem the slide.
The KOSPI opened at 6,692.62, down 3.14% from the previous session. As of 9:10 a.m., foreigners had net sold 668.7 billion won (approximately $497.8 million) and institutions 226.6 billion won (approximately $168.7 million). Retail investors alone absorbed the selling with net purchases of 849 billion won (approximately $632.0 million), but were unable to stop the index's decline.
Most large-cap stocks traded lower, including Samsung Electronics (down around 3%), SK Hynix (dropped around 4%), and SK Square (plunged around 6%). Hanwha Aerospace bucked the trend, rising around 1%.
Min Kyung-won, a researcher at Woori Bank, said, 'Amid Fed rate-hike caution, the yen's strength triggered by BOJ hike bets is expected to push the pair below 1,340 won before a rebound.'