(2nd LD) Seoul stocks snap 3-day rise on tech slump

Seoul stocks reversed three days of gains on Friday, slipping sharply as investors dumped tech giants, unnerved by external uncertainties such as U.S. trade policy. The Korea Composite Stock Price Index (KOSPI) fell 1.79 percent, closing at 6,788.88 points. The Korean won strengthened against the U.S. dollar. The benchmark index's volume was low at 287.6 million shares, worth 19.9 trillion won.

Winners were 638 while losers outnumbered them 237. Foreign and institutional investors were net sellers, offloading 2 trillion won. Retail investors bought a net 424.36 billion won. Analysts cited external uncertainties and the Jackson Hole meeting's outcome as reasons for the sentiment slump. Fed Chair Kevin Warsh was to deliver his first keynote speech at the meeting, potentially revealing the central bank's future policy direction.

The U.S. administration announced no talks between the U.S. and Iran to end the war, and hinted at new tariffs on semiconductors, fueling more market uncertainty. Tech stocks declined, while cosmetics and refiners gained. Samsung Electronics tumbled 3.38 percent to 257,000 won, while SK hynix dropped 4.45 percent to 1,653,000 won.

Cosmetics firm APR surged 6.21 percent to 461,500 won, while refiner S-Oil rose 9.14 percent to 149,200 won. Samsung Biologics, after announcing a 3 trillion won rights offering, fell 6.65 percent to 1,486,000 won. The Korean won rose to 1,372.5 against the U.S. dollar, up 8.4 won from the previous trading session. Bond prices fell, with the yield on three-year Treasurys increasing by 3.3 basis points to 3.788 percent and the return on benchmark five-year government bonds adding 4.7 percentage points to 4.021 percent.