Seoul stocks snap 3-day rise on tech slump

Seoul stocks experienced a significant decline on Friday, marking the end of a three-day upward trend, as investors responded to external uncertainties, particularly the impact of U.S. trade policy. The Korean won strengthened against the U.S. dollar during the session. The Korea Composite Stock Price Index (KOSPI), which serves as the benchmark for the South Korean stock market, fell by 123.49 points, or 1.79 percent, to close at 6,788.88.

Investor sentiment was largely negative due to the external uncertainties that had gripped the market. Analyst Lee Kyoung-min from Daishin Securities noted that investor confidence was dampened by these concerns, and many investors opted for a wait-and-see approach as they awaited the upcoming Jackson Hole meeting.

A key event on the market's radar was the Jackson Hole meeting, where U.S. Federal Reserve Chair Kevin Warsh was scheduled to deliver his first keynote speech. This address could offer insights into the central bank's forthcoming policy decisions, which would undoubtedly influence market sentiment.

Meanwhile, the political landscape in Washington added to the market's unease. The Trump administration confirmed that there were no ongoing discussions between the United States and Iran to resolve the ongoing conflict. Furthermore, there were reports that the administration was considering implementing new tariffs on semiconductors, which would add another layer of uncertainty to an already volatile market.