FX.co ★ South Korean Shares Extend Decline

The benchmark KOSPI slipped to around 6,230 on Tuesday, extending losses for a second consecutive session as major technology names remained under pressure. Samsung Electronics and SK Hynix each declined more than 3%. Other notable losers included Hyundai Motor (-3.3%), Samsung Electro-Mechanics (-3.6%), KB Financial Group (-0.7%), Kia Corporation (-1.4%), Shinhan Financial Group (-1.6%), and Hyundai Mobis (-5.1%).

On the macroeconomic front, South Korea’s annual inflation rate slowed to 2.8% in July from 3.2% in June, coming in below market expectations of 3.0%. However, a pickup in core inflation reinforced expectations that the Bank of Korea will maintain its restrictive monetary policy stance.

Investors also tracked geopolitical developments in the Middle East after US President Donald Trump said talks with Iran on reopening the Strait of Hormuz were underway. Persistent uncertainty over the outcome of those negotiations continued to curb risk appetite.