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South Korean Shares Fall as Oil and Yields Climb

The benchmark KOSPI slipped nearly 2% to around 6,920 on Thursday, reversing gains from the previous session amid surging oil prices and higher US Treasury yields. Brent crude rose above $101 a barrel, its highest level since May, amid escalating US-Iran tensions and growing concerns over disruptions to Middle East energy supplies, raising concerns over inflation and the outlook for monetary policy. The US 10-year Treasury yield also climbed to around 4.86%, its highest level since November 2023, while Wall Street stocks fell for a third straight session, weighing further on Korean shares. Major large-cap stocks declined, including Samsung Electronics (-2.1%), SK hynix (-2.2%), SK Square (-3.4%), Hyundai Motor (-1.3%), LG Energy Solution (-2.4%), and Doosan Enerbility (-4.1%). Meanwhile, South Korea and France agreed to strengthen cooperation in AI and semiconductors, including joint research and investment, offering some longer-term support for Korea’s technology sector.

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