(2nd LD) Seoul shares fall for 2nd day on foreign selling amid renewed Hormuz tensions

Seoul shares slipped for a second day on Friday, September 7, driven by foreign selling amid heightened tensions in the Middle East, particularly around the Strait of Hormuz. After starting the day 1.09 percent higher, the KOSPI index dipped 37.61 points, or 0.6 percent, closing at 6,258.77. The trading volume was relatively light, totaling 297.18 million shares worth 24.3 trillion won.

The index's decline of 4.58 percent was the previous day's biggest drop, largely driven by technology stocks. In the overnight session, U.S. stocks also ended lower, with the Dow Jones Industrial Average falling 0.85 percent and the tech-focused Nasdaq Composite slipping 0.06 percent. Foreign investors offloaded a net 858.07 billion won worth of stocks, while domestic investors, both institutional and retail, bought a net of 578.99 billion won and 266.98 billion won, respectively.

Experts believe the uncertainty surrounding the strategic waterway could keep oil prices high, contributing to the market's volatility. Major companies like SK hynix, Hyundai Motor, and Lotte Shopping all saw their shares decline. Among the gainers, Samsung Electronics and Hanwha Aerospace were the notable exceptions, with the former up 0.22 percent and the latter jumping 4.08 percent.

The Korean won strengthened against the US dollar, closing at 1,417.70 won, up from the previous day's close. Government bond yields, which inversely correlate with prices, rose slightly, with the three-year Treasurys yield at 3.746 percent and the five-year bond yield at 3.964 percent.