18.08.202502:04:44UTC+00South Korean Shares Extend Losses as Tech Stocks Drop

On Monday, the KOSPI index declined by 1.0% to approximately 3,190, continuing its downward trend as investors returned from a holiday. The downturn was influenced by weak performances in major technology shares, aligning Seoul's market with Wall Street's lackluster conclusion on Friday. Notably, the domestic chipmaking sector led the decline, with Samsung Electronics experiencing a drop of 1.8% and SK Hynix falling 2.4%, while LG Energy Solution also decreased by 1.8%. The selloff extended to defense and industrial stocks, with Hanwha Aerospace slipping by 0.3%. On the international front, market sentiment was negatively affected by geopolitical tensions following the US–Russia summit, which concluded without any significant advancement toward a ceasefire. This outcome suggested minimal progress in de-escalating the situation, prompting investor caution due to concerns over sustained instability in Eastern Europe. As a result, risk aversion spread across Asian markets. Additionally, apprehensions persisted regarding inflated tech stock valuations and the ambiguity surrounding US monetary policy, with investors keenly anticipating guidance from the upcoming Jackson Hole symposium later this week.