Seoul shares trim losses late Mon. morning amid tech sell-off

Seoul's stock market saw a brief recovery late Monday morning as retail investors bought shares, helping to offset earlier losses driven by a sell-off in the tech sector. The Korea Composite Stock Price Index (KOSPI) opened 2.58 percent lower but later erased its losses, closing 133.62 points, or 1.96 percent, below the 6,655.62 mark by 11:20 a.m. local time.

Institutions and foreign investors collectively sold a combined net of 1.108 trillion won worth of stocks, while retail investors purchased a net of 502.09 billion won. Federal Reserve Chair Kevin Warsh, in his inaugural speech as the head of the U.S. central bank, expressed concerns about inflation remaining persistent, suggesting the possibility of further interest rate hikes at the upcoming Jackson Hole symposium in Wyoming.

The tech-heavy Nasdaq Composite index also suffered, falling 0.52 percent, while the broader Dow Jones Industrial Average slipped 0.02 percent. Among the affected companies, Samsung Electronics and SK hynix, both chipmakers, saw their shares plunge by 2.24 percent and 2.36 percent, respectively. Hyundai Motor and Hanwha Aerospace, defense firms, experienced declines of 0.44 percent and 3.07 percent, respectively.

However, some sectors benefited from the market volatility; LG Energy Solution, a leading battery maker, gained 0.41 percent, and SK Innovation, a major refiner, surged 7.1 percent. As of 11:20 a.m., the Korean won was trading at 1,375.05 per U.S. dollar, up 4.45 won from the previous trading session.