South Korean shares slide nearly 3% as tech selloff deepens; won strengthens

The benchmark KOSPI fell 159.11 points, or 2.72%, to 5,699.97 as of 0233 GMT.

The benchmark KOSPI fell 159.11 points, or 2.72%, to 5,699.97 as of 0233 GMT. Technology stocks led the decline, with chipmakers Samsung Electronics and SK Hynix falling 3.17% and 4.14%, respectively.

Other heavyweight stocks also traded lower. Battery maker LG Energy Solution declined 3.51%, while Hyundai Motor shed 3.57% and Kia Corp lost 1.25%. Steelmaker POSCO Holdings dropped 5.65%, while drugmaker Samsung BioLogics bucked the trend, rising 2.18%.

The weakness in Seoul mirrored losses on Wall Street, where US stocks edged lower as concerns over technology sector earnings weighed on investor sentiment. The S&P 500 slipped 0.5%, despite data indicating an improvement in US manufacturing activity in October, supported by strong domestic demand, Reuters reported.

The technology-led selloff overshadowed positive global market cues from the energy market. Oil prices plunged more than 7% on Monday after discussions between Iranian and Qatari officials raised hopes of diplomatic progress towards ending the US-Israeli war with Iran and stabilising crude supplies from the Middle East, according to Reuters.

Market breadth in South Korea remained negative, with 624 stocks declining against 250 advancing among 908 traded issues. Foreign investors were net sellers, offloading shares worth 811.4 billion won, Reuters data showed.

In the currency market, the South Korean won strengthened against the US dollar. It was quoted at 1,340.8 per dollar on the onshore settlement platform, gaining 0.39% from its previous close of 1,346.0.

Despite Tuesday's decline, the KOSPI has gained 35.26% so far this year. The won has also strengthened 7.4% against the dollar over the same period.

South Korean government bond yields declined, reflecting gains in bond prices. December futures on three-year Treasury bonds rose 0.09 points to 103.48.

The benchmark three-year Korean Treasury bond yield fell 2 basis points to 3.724%, while the 10-year yield declined 4.5 basis points to 3.997%, Reuters reported.