(LEAD) Seoul stocks down for 2nd day amid rising bond yields

Seoul stocks experienced another decline on Wednesday, marking the second consecutive day of losses, driven by increasing bond yields reaching record levels. The Korean won strengthened against the U.S. dollar. The benchmark KOSPI closed down 137.49 points, or 1.98 percent, at 6,803.90, after initially opening 1.11 percent lower.

Despite Wall Street's gains overnight, local shares suffered due to lingering concerns about high bond yields. Although global oil prices fell as supply worries eased, bond yields retreated from their multi-decade highs. The Dow Jones Industrial Average gained 0.49 percent, while the tech-heavy Nasdaq composite rose 0.45 percent, reaching a record high.

Trading volume was relatively light at 256.76 million shares worth 19.69 trillion won, with more decliners than advancers at 525 to 332. Foreign investors and institutions collectively sold a net of 2.59 trillion won and 672.7 billion won, respectively, while domestic individuals bought a net of 2.56 trillion won. Analyst Lee Kyung-min from Daishin Securities attributed the pressure on the KOSPI to rising international oil prices and U.S. Treasury yields.

Investors adopted a cautious stance ahead of Samsung Electronics' preliminary earnings report, leading to net selling by both foreign and institutional investors. Samsung Electronics fell 1.29 percent to 268,500 won, while SK hynix dropped 2.82 percent to 1.72 million won, and SK Square, parent company of SK hynix, declined 1.64 percent to 1.14 million won.

Samsung Electro-Mechanics, an electronics component subsidiary of Samsung Electronics, recorded a 4.24 percent decrease to 1.6 million won. The Korean won traded at 1,340.4 won against the U.S. dollar as of 3:30 p.m., slightly lower than the previous session's close of 1,343.6 won. Bond prices, inversely related to yields, fell, with the yield on three-year Treasurys increasing by 2.8 basis points to 3,961 and the return on five-year government bonds rising 1.7 basis points to 4.134.