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South Korean Shares Extend Slide

The benchmark KOSPI fell more than 2% to around 6,850 on Friday, extending losses from the previous session amid surging oil prices and higher US Treasury yields. WTI climbed above $100 per barrel, while Brent topped $107 amid escalating US-Iran tensions, raising concerns over inflation and further disruptions to oil supplies. Additionally, the US 10-year Treasury yield rose to its highest level since October 2023, while rate-hike bets for next week’s Fed meeting strengthened. Samsung Electronics and SK hynix led the decline, with both down nearly 4%, alongside losses in SK Square (-4.9%), Hyundai Motor (-1.9%), and LG Energy Solution (-2.2%). Separately, the BOK signaled it will assess the timing and pace of further rate hikes as inflation remains above target, with CPI accelerating to 3.1% in August. Meanwhile, South Korea’s exports surged 83% year-on-year in the first 10 days of September, led by semiconductor shipments that jumped 270% amid robust AI demand.

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