Key facts
- Seoul shares closed down over 2% on Wednesday.
- The KOSPI index fell 2.04% to 8,303.41.
- Chip stocks led the decline.
- South Korean exports hit a record high of over $100 billion in June.
- The Korean won weakened against the U.S. dollar.
Seoul shares ended more than 2 percent lower on Wednesday, as investors took profits after recent artificial intelligence-fueled rallies in semiconductor shares. Uncertainty surrounding U.S.-Iran peace talks also contributed to the decline, with the Korean won weakening against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 173.07 points, or 2.04 percent, to close at 8,303.41. Overnight, U.S. stocks closed higher on a continued chip rally, while investors closely watched developments regarding peace talks between Washington and Tehran. Iran stated on Tuesday it would not meet with top U.S. envoys who had traveled to the region following recent hostilities near the Strait of Hormuz, even as indirect talks continued through mediators in Qatar.
Chip heavyweights weighed on the broader market despite robust export data released earlier in the day. South Korea's exports reached a record high in June, surpassing the US$100 billion mark for the first time, driven by record semiconductor shipments.