Global Market: Kospi falls as oil prices, Middle East uncertainty weigh

South Korean shares slipped on Thursday despite a sharp increase in exports, as elevated global oil prices and uncertainty over the sustainability of recovering Middle East oil flows weighed on investor sentiment, according to Reuters.

The benchmark KOSPI fell 14.60 points, or 0.21%, to 6,823.44 as of 00:56 GMT. The won weakened, while government bond yields moved higher.

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South Korea's exports surged 83.5% year-on-year in September to a record $120.9 billion, government data showed on Thursday. The report stated that the increase was driven largely by semiconductor shipments, which more than tripled amid strong global spending on artificial intelligence.

Despite the strong trade data, investors remained cautious as oil prices stayed elevated and uncertainty persisted over the stability of oil supplies from the Middle East.

Among major stocks, Samsung Electronics fell 0.19%, while SK Hynix gained 0.23%. LG Energy Solution was flat. Hyundai Motor slipped 0.07%, while Kia Corp rose 0.27%.

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Steelmaker POSCO Holdings declined 0.16%, while Samsung BioLogics gained about 2%.

US President Donald Trump on Wednesday unveiled plans for South Korea to invest about $200 billion in US projects. The report by Reuters stated that Seoul subsequently indicated that a key component of the plan, a $54 billion pipeline for a liquefied natural gas project in Alaska, was not yet finalised.

Market breadth remained weak, with 487 of the 905 traded issues declining, compared with 354 that advanced. Foreign investors were net sellers of shares worth 494.4 billion won.

The won stood at 1,359.4 per dollar on the onshore settlement platform, down 0.27% from its previous close of 1,355.7.

The Kospi has gained 61.92% so far this year, while the won has strengthened 5.9% against the dollar over the same period.

In the bond market, December futures on three-year Treasury bonds fell 0.07 point to 102.30. The yield on the most liquid three-year Korean Treasury bond rose 2.4 basis points to 4.035%, while the benchmark 10-year yield increased 5 basis points to 4.451%, the report stated.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)