26.08.202506:47:38UTC+00KOSPI Falls on Fed Turmoil, Post-Summit Profit-Taking

The KOSPI index dropped by 0.95%, concluding the day at 3,179 on Tuesday, offsetting part of the previous session's 1.30% increase. This decline was influenced by weakened risk sentiment following the removal of US Federal Reserve Governor Lisa Cook. The decision by President Donald Trump to dismiss Cook due to allegations of mortgage fraud has increased legal and political uncertainty regarding the Federal Reserve's independence, impacting equity markets across Asia. Additionally, profit-taking activities added pressure after the US–South Korea summit, particularly affecting shipbuilders, which had been spotlighted for potential bilateral cooperation. The sector saw significant losses, with Hanwha Ocean falling by 6.44%, HD Korea Shipbuilding & Offshore Engineering declining by 5.71%, and HD Hyundai Heavy Industries dropping by 4.21%.