(2nd LD) Stocks extend losing streak to 4th session on external uncertainties

Seoul stocks continued a four-day losing streak on Tuesday, as investors grappled with macroeconomic uncertainties and cautious remarks from AI industry leaders. The Korea Composite Stock Price Index (KOSPI) fell 0.85 percent to 6,627.26 points, while the Korean won weakened against the U.S. dollar. The benchmark KOSPI experienced a drop of 57.11 points.

There were 274 million shares traded, valued at 16.2 trillion won, with losers outnumbering winners 621 to 253. Retail investors were net buyers, purchasing 833.13 billion won worth of shares, while institutional and foreign investors collectively sold 2.48 trillion won worth of shares.

Analysts noted that investors were sensitive to external uncertainties, including potential interest rate hikes and rising global oil prices. The yield on 10-year U.S. Treasurys surpassed 5 percent, and Brent Crude oil prices increased by around 1.6 percent, surpassing US$107 per barrel. Federal Reserve's upcoming rate-setting meeting is also drawing attention from investors.

Among the top market heavyweights, Samsung Electronics and SK hynix experienced slight declines, while defense companies Hanwha Aerospace and LIG Defense & Aerospace saw profit-taking. Battery manufacturers, such as LG Energy Solution and Samsung SDI, benefitted from President Trump's criticism of Ford Motor Company's partnership with Chinese automotive firms.

The Korean won weakened to 1,359.4 per U.S. dollar, a drop of 12.1 won from the previous trading session. Bond prices fell, with the yield on three-year Treasurys increasing by 6.6 basis points to 4.091 percent, and benchmark five-year government bonds' yield adding 6.6 basis points to 4.345 percent.