FX.co ★ South Korean Shares Extend Decline

The benchmark KOSPI fell more than 1% to around 7,400 on Monday, extending the previous session’s losses as rising global bond yields and mounting inflation concerns fueled risk-off sentiment. Confidence deteriorated after a sharp rise in US Treasury yields reinforced expectations that the Federal Reserve will keep interest rates higher for longer, while escalating tensions in the Middle East drove oil prices higher and intensified inflation worries.

Heavy losses were recorded in Hyundai Motor (-6.3%), SK Square (-3.3%), LG Energy Solution (-4.8%), HD Hyundai Heavy Industries (-5.5%), Doosan Enerbility (-3.9%), and SK Hynix (-0.3%). At the same time, uncertainty surrounding a planned strike at Samsung Electronics further pressured sentiment, raising fears of potential disruptions to semiconductor production and exports. The government warned that the strike could harm the broader economy and said it may consider emergency arbitration measures if labor-management negotiations fail before the walkout planned for later this week.