South Korean shares fall more than 2% as chipmakers drop

Business Recorder reported that Seoul stocks slid more than two per cent on Monday, with chip producers leading the decline. The main KOSPI index lost 150.83 points, or 2.13 per cent, to stand at 6,930.09 as of 0122 GMT, reversing a four-day rally that had carried it to a two-month peak. Trading resumed after the Chuseok holidays shut the market on Thursday and Friday.

Samsung Electronics dropped 3.94 per cent and SK Hynix fell 4.67 per cent, while battery maker LG Energy Solution gained 3.20 per cent. Hyundai Motor and Kia rose 0.42 per cent and 0.78 per cent respectively, and POSCO Holdings and Samsung BioLogics also advanced. Foreign investors were net sellers of shares worth 811.3 billion won, or $597.09 million.

Investors are now looking ahead to South Korea's export data and Micron Technology's earnings, both coming up later in the week, which analysts see as clues for an AI-driven chip boom. The Bank of Korea said it was watching financial and currency markets closely, while the won held at 1,357.0 per dollar. Wall Street closed higher on Friday, but high oil prices and a recent jump in US Treasury yields left investors wary.