Global Market: South Korean shares fall as investors await Samsung Electronics earnings

South Korean shares fell on Wednesday as investors adopted a cautious stance ahead of Samsung Electronics' third-quarter earnings report. Markets are looking for fresh signals on the strength of artificial intelligence-related chip demand.

The benchmark KOSPI was down 43.20 points, or 0.62%, at 6,898.19 as of 0138 GMT.

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Samsung Electronics rose 0.18% after gaining more than 2% earlier in the session, while rival SK Hynix fell 1.52%. Samsung is expected to report on Thursday a nearly nine-fold increase in third-quarter operating profit, helped by strong demand for AI-related products. However, analysts have lowered their profit forecasts by nearly 8% since the end of August, Reuters reported.

Market gains were also limited by caution ahead of a public holiday later in the week. South Korean financial markets will remain closed on Friday.
Among other major stocks, battery maker LG Energy Solution gained 0.38%. Hyundai Motor fell 2.16%, while Kia Corp declined 1.95%. Steelmaker POSCO Holdings dropped 2.36%, and Samsung BioLogics lost 1.91%.

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Of the 911 stocks traded, 415 advanced and 438 declined. Foreign investors were net sellers of shares worth 865.3 billion won ($646.93 million).

The South Korean won was quoted at 1,338.3 per dollar on the onshore settlement platform, up 0.04% from its previous close of 1,338.8.

In the bond market, December futures on three-year Treasury bonds fell 0.01 point to 102.62. The yield on the most liquid three-year Korean Treasury bond rose 1.4 basis points to 3.949%, while the benchmark 10-year yield increased 1.1 basis points to 4.384%, Reuters reported.

Investors are now focused on Samsung's earnings for indications of whether the AI-led semiconductor cycle can sustain its momentum and support the broader South Korean market.

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