Key facts
- Seoul shares closed down 5.8% on Wednesday.
- Chipmakers led the market decline, with Samsung Electronics down 7.82% and SK hynix down 9.75%.
- Rising oil prices and global bond yields dampened investor sentiment.
- Wall Street indexes closed lower overnight.
- The U.S. 30-year Treasury yield reached its highest level since 2007.
Seoul shares plunged nearly 6% on Wednesday, with the benchmark Korea Composite Stock Price Index (KOSPI) closing down 5.8% at 6,471.17. The decline was driven by steep losses in chipmakers, as rising oil prices and global bond yields dampened investor sentiment. The Korean won, however, rose against the U.S. dollar.
Chipmakers led the market's fall, with Samsung Electronics plunging 7.82% and its rival SK hynix tumbling 9.75%. The KOSPI 200 futures index falling 5% or more for at least one minute triggered the bourse operator to suspend program trading for five minutes by activating a sell-side sidecar.
Overnight, major Wall Street indexes closed lower. Stalled peace efforts between the United States and Iran weighed on investor sentiment and pushed oil prices higher. The U.S. 30-year Treasury yield rose to its highest level since 2007, fueled by concerns that elevated energy prices could sustain high inflation.