Key facts
- Foreign investors withdrew a record $27.08 billion from Asian equities in June.
- This outflow follows nearly $27 billion withdrawn from emerging market portfolios in May.
- South Korean stocks closed higher on Thursday, recovering from earlier losses.
- The KOSPI index rose 0.43%, while the KOSDAQ surged 4.76%.
- Foreign investors continued selling South Korean shares for the 24th consecutive session.
- Strong semiconductor export data and softer-than-expected U.S. inflation data supported the market rebound.
Foreign investors withdrew a record $27.08 billion from Asian equities in June, driven by Middle East tensions and a tech stock rout. This follows nearly $27 billion pulled from emerging market portfolios in May.
South Korean stocks closed higher on Thursday, with the benchmark KOSPI index adding 0.43% to 7,763.95, and the secondary KOSDAQ surging 4.76% to 996.93. The market had opened significantly lower, tracking an overnight tech slide on Wall Street. However, investor sentiment improved as semiconductor shares gained ground following data showing South Korea's chip exports more than tripled year-on-year in early June. Overall exports also saw a substantial increase.
Concerns over the high valuation of artificial intelligence stocks led to a tech sell-off on Wall Street, impacting Asian markets initially. However, softer-than-expected U.S. Consumer Price Index data for May helped to soothe market anxieties. Despite the rebound, uncertainties surrounding the Middle East crisis persist.
In Seoul, major chipmakers like Samsung Electronics and SK hynix saw mixed performance, with SK hynix closing higher. Retail investors were net buyers of local shares, while foreign investors continued their selling streak for the 24th consecutive session.