FX.co ★ South Korea Shares Fall on Profit-Taking

The KOSPI index decreased by 0.4% to approximately 2,960 on Thursday, retreating from its highest levels in over three years. This decline comes as investors cashed in on profits following a market rally lasting four consecutive weeks. Furthermore, the investment community adopted a more cautious approach due to increasing uncertainties on the global stage, especially regarding potential U.S. involvement in the Middle East. On the domestic front, the Bank of Korea has forecasted that the headline inflation rate will likely stay slightly below the central bank's 2% target in the near future. This prediction is largely influenced by the anticipated effects of new U.S. tariffs on Chinese goods, which might lead Chinese exporters to redirect their shipments to regional markets to sidestep U.S. trade measures. Amongst the major stocks, Samsung Electronics and Hanhwa Aerospace experienced losses of 0.3% and 1.6% respectively. Conversely, SK Hynix and Hyundai Motor saw gains of 0.4% and 0.5% respectively.