FX.co ★ South Korean Shares Pull Back from Record High

On Tuesday, the KOSPI index declined by 0.5% to approximately 4,880, ending a twelve-day streak of record highs. This downturn was driven by worsening global risk sentiment and investors capitalizing on profits. The external landscape became more challenging after renewed tariff threats from the U.S. against Europe rekindled trade uncertainties. Additionally, a surge in Japan's long-term government bond yields tightened financial conditions in the region, dampening risk appetite in Asian equity markets. This decline followed the index's recent breakthrough above the 4,900-point milestone for the first time. With investment positioning extended, investors took the opportunity to secure profits, making the index more vulnerable to negative global developments. Losses were notably concentrated among major chipmakers, with Samsung Electronics and SK hynix both tumbling over 2%, indicative of valuation pressures amid a broader shift towards risk aversion. Other market heavyweights also faced declines, including Hyundai Motor (-1.9%), Kia Corporation (-3.2%), HD Hyundai Heavy Industries (-1.5%), and SK Square (-2.0%).