KOSPI falls as investors remain cautious ahead of chip earnings

The KOSPI, South Korea's major stock index, declined on Monday due to heightened Middle Eastern tensions and a drop in oil prices. The index closed at 5,469.47 points, marking a 1.46% decrease or 80.83 points from the prior trading session. Foreign investors offloaded a net 6.955 trillion won worth of shares, while institutional and retail investors sold shares worth 6.11 trillion won and 474 billion won respectively.

Major blue-chip companies also saw a drop in their stock prices. SK hynix, a leading semiconductor maker, fell 2,000 won to 1,275,000 won, while Samsung Electronics closed 2,500 won lower at 213,000 won.

The recent rise in oil prices, driven by renewed tensions in the Middle East and concerns over potential U.S. strikes on Iran, contributed to the cautious sentiment among investors. Brent crude futures remained near $115 a barrel, up about 6 percent last week due to fears of disruptions to global energy supplies. Investors are also bracing for earnings announcements from Korea's two largest chipmakers, with SK hynix expected to release its third-quarter results later in the week.