South Korean market slides nearly 2% as bond yields hit multidecade highs
South Korean equities fell about 2% on Wednesday, led by tech stocks, as rising bond yields pressured investors despite a stronger won.
On Wednesday, South Korean stocks extended a losing streak, with the benchmark KOSPI slipping 137.49 points, or nearly 2%, to finish at 6,803.90 after a 1.11% opening decline. The slide was driven chiefly by falls in technology stocks amid heightened anxiety over bond yields that have risen to levels not seen in decades. The Korean won strengthened against the dollar, trading at 1,340.4 won per U.S. unit, compared with 1,343.6 the previous day.
Meanwhile, U.S. markets rose, as the Dow Jones Industrial Average gained 0.49% and the Nasdaq climbed 0.45% to a new record. Global oil prices fell on reduced supply worries, and bond yields eased from their multidecade peaks, but the pressure on Korean equities persisted.
Why it matters
The drop highlights how global bond yield spikes can weigh on South Korea's market and tech sector.
How this story developed
- Sep 30 Asian markets rally as investors eye US inflation data and bond yields
- Oct 7 Nasdaq closed at a record high and Japan lifted its 10‑year bond coupon to 3.1%.
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