KOSPI falls as US 10-year yield tops 5%, oil prices rise

Korean stocks declined on Tuesday as rising U.S. Treasury yields and escalating oil prices overshadowed buying activity in semiconductor shares, while foreign investors continued their selling trend into a fifth consecutive day. The KOSPI index ended at 6,627.26, marking a 0.85% decrease from the prior session. Following a 3.26% drop the previous day, the index initially recovered as semiconductor stocks drew bargain-hunting interest.

However, it turned bearish after 2 p.m. and reached a low of 6,620.20 intraday. This downturn was attributed to an increasingly unfavorable economic environment.

The U.S. 10-year Treasury yield surged to 5.02%, while Brent crude oil prices climbed from $105.68 to $107.35 per barrel. Foreign and institutional investors collectively sold a net 1.57 trillion won ($1.15 billion) and 904.4 billion won worth of shares. In contrast, retail investors purchased a net 832.4 billion won worth of shares.

Within the sector, SK hynix experienced a 0.41% decrease, closing at 1,690,000 won, while Samsung Electronics saw a 0.2% drop, settling at 248,500 won. The performance was varied, with large-cap stocks performing poorly.