FX.co ★ South Korean Shares Edge Down

The benchmark KOSPI slipped to around 6,780 on Thursday, extending losses for a third consecutive session as persistently high global bond yields and mounting inflation concerns pressured equities. The yield on the US 10-year Treasury climbed to 5.35%, its highest since 2002, while minutes from the Federal Reserve’s latest meeting indicated that most policymakers still support one additional rate hike by year-end. This reinforced expectations of prolonged elevated US borrowing costs, weighing particularly on technology shares.

At the same time, Brent crude hovered near $100 per barrel, exacerbating inflation risks and further constraining the scope for monetary easing. On the corporate front, notable declines were recorded in Samsung Electronics (-0.56%), SK Square (-4.99%), Hyundai Motor (-3.13%), Hanwha Aerospace (-5.76%), and Doosan Enerbility (-4.97%).

Nevertheless, sentiment around Samsung Electronics was underpinned by a record third-quarter operating profit estimate of KRW 107.4 trillion, a surge of 782.5% year-on-year and above market expectations. The sharp improvement was driven by robust AI-related demand, which supported higher memory chip prices and significantly boosted earnings.