Stock futures rise as Treasury yields take a breather

Seoul's stock market experienced a third consecutive day of decline on Wednesday, as soaring U.S. Treasury yields raised worries about higher borrowing expenses and dampened investor confidence. The benchmark Korea Composite Stock Price Index (KOSPI) slipped 32.77 points, or 0.48 percent, to close at 6,838.04, continuing its losing streak.

Overnight, U.S. stocks experienced a modest decline, despite a drop in oil prices, due to persistent high Treasury yields keeping investors on edge. Global bond yields have surged to multi-year peaks as fears persist that surging energy prices could sustain inflationary pressures and trigger additional interest rate hikes. The 30-year U.S. Treasury yield reached 5.6 percent, its highest level in 24 years, while the benchmark 10-year yield stayed above 5.2 percent, the highest point since 2007.

Trading activity was light, with 264.24 million shares changing hands, worth 18.81 trillion won (US$13.89 billion), and decliners outnumbering advancers 511 to 351. Both foreigners and institutions shed a combined net worth of 2.82 trillion won, while individuals gained a net 1.17 trillion won. Notably, market leaders Samsung Electronics and SK hynix saw their shares drop 1.47 percent to 268,500 won and rise 0.62 percent to 1.78 million won, respectively.

Meanwhile, KB Financial Group fell 2.71 percent to 168,800 won, and Shinhan Financial Group decreased 3.98 percent to 106,100 won. The Korean won strengthened against the U.S. dollar, trading at 1,352.8 won, up 1.2 won from the previous session's close. Analyst Han Ji-young from Kiwoom Securities noted that while investors had anticipated further rises in the 10-year U.S. Treasury yield, the rapid pace of the increase had continued to adversely affect stocks.