Key facts
- Seoul shares closed lower for a second straight session Friday.
- Foreign selling weighed on the market due to renewed Middle East tensions.
- The KOSPI index fell 0.6 percent to 6,258.77.
- European shares edged higher, led by healthcare stocks.
- Brent crude futures rose on concerns over the Strait of Hormuz.
- U.S. payrolls data is anticipated for interest-rate outlook clues.
Seoul shares concluded Friday's trading session lower for the second consecutive day, as foreign investors offloaded equities amid heightened geopolitical tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) fell 37.61 points, or 0.6 percent, to close at 6,258.77, after experiencing a significant 4.58 percent drop in the prior session, largely driven by technology stock losses.
European shares edged higher, with the pan-European STOXX 600 index rising 0.2% to 659.59 points, on track for a fourth consecutive weekly advance. Healthcare stocks led sectoral gains, rising 1.3%, while insurers declined 0.6%. Brent crude futures extended gains, rising to $83.29 a barrel due to concerns over the Strait of Hormuz, where Iran suggested banning vessels deemed hostile.
Overnight, U.S. markets showed a mixed performance, with the Dow Jones Industrial Average declining 0.85 percent and the Nasdaq Composite slipping 0.06 percent. Investors are now awaiting U.S. payrolls data for July, expected to show accelerated growth, which could influence the Federal Reserve's interest-rate outlook.
Foreign investors were net sellers of Korean stocks, offloading 858.07 billion won (US$605 million), while domestic institutions and retail investors bought net amounts of 578.99 billion won and 266.98 billion won, respectively. Analysts suggest that the ongoing uncertainty surrounding the Strait of Hormuz is likely to sustain elevated oil prices, contributing to market volatility.