South Korean shares set for biggest weekly fall since 2008 on AI worries

By Reuters News

SEOUL, Oct 16 (Reuters) - A round-up of South Korean financial markets:


** South Korean shares rebounded from a six-month closing low on Friday on dip buying but remained on track for their biggest weekly loss in 18 years on AI worries.

** The benchmark KOSPI .KS11 was up 131.07 points, or 2.36%, at 5,685.29, as of 0200 GMT.

** On Thursday, the index fell nearly 8% to close at the lowest since April 7, as doubts grew over the sustainability of the global AI investment boom. The index extended losses to a seventh straight session, the longest run of daily losses since September 2024.

** The index has fallen 14.3% so far this week, heading for a third consecutive weekly decline and the biggest weekly loss since October 2008.

** "Past cases of seven consecutive sessions of losses suggest much higher expected value for technical reversal than risk of additional decline," said Han Ji-young, an analyst at Kiwoom Securities.

** South Korea's finance ministry said it would step up financial market monitoring and closely watch for any impact of recent stock market volatility on bond, foreign exchange and short-term money markets.

** Chipmaker Samsung Electronics 005930.KS rose 1.90%, while peer SK Hynix 000660.KS gained 1.82%.

** Among other index heavyweights, battery maker LG Energy Solution 373220.KS climbed 0.62%, while Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were up 6.77% and 5.52%, respectively.

** Steelmaker POSCO Holdings 005490.KS added 2.74%, while drugmaker Samsung BioLogics 207940.KS rose 4.33%.

** Of the total 914 traded issues, 768 shares advanced, while 124 declined.

** Foreigners were net sellers of shares worth 307.8 billion won ($228.77 million).

** The won was quoted at 1,346.1 per dollar on the onshore settlement platform , 0.30% lower than its previous close at 1,342.0.

** In money and debt markets, December futures on three-year treasury bonds gained 0.01 point to 102.96.

** The most liquid three-year Korean treasury bond yield rose by 0.8 basis point to 3.877%, while the benchmark 10-year yield rose by 0.3 basis point to 4.205%.


($1 = 1,345.4700 won)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.