South Korean stocks end 8% lower as U.S. rate fears hit high-flying Asia
South Korea's KOSPI tumbled 8% on Monday, the worst single-day fall in three years, with SK Hynix and Samsung Electronics dropping double digits. Concerns over a more hawkish U.S. interest-rate path triggered a broader sell-off across Asia's high-flying markets.
Seoul's KOSPI benchmark closed down 8.06% on Monday, marking the steepest single-day fall in three years. SK Hynix tumbled 11% and Samsung Electronics fell 9%, while the broader semiconductor sub-index slid 13% for its worst session of the year. The tech-heavy KOSDAQ index also lost about 6%.
Traders blamed concerns over the U.S. interest-rate path; Friday's strong non-farm payrolls report stoked expectations that the Federal Reserve will push back the timing of any rate cuts. A Goldman Sachs Asia strategist wrote in a note that leveraged positions in South Korea were unwound by margin calls and pressure may persist in the near term.
Foreign-investor outflows reached $4.2 billion in June and have totalled more than $18 billion year-to-date. The won weakened to 1,402 against the dollar. Across Asia, Taiwan fell 4%, Japan 3% and Hong Kong 2.8%. This article is not investment advice.
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