South Korean stocks paused their stellar run on October 28, as investors cashed in gains ahead of major events like the Trump-Xi meeting and the Federal Reserve's rate decision. The KOSPI index slid 0.8 percent to close at 4,010.41. The local currency weakened against the U.S. dollar.
South Korea's stock market took a breather on Tuesday, October 28, following weeks of impressive gains. Investors locked in some profits ahead of key events like the Trump-Xi summit and the Federal Reserve's rate decision, causing the benchmark Korea Composite Stock Price Index (KOSPI) to drop 32.42 points, or 0.8 percent, closing at 4,010.41. The index had been on a bull run since late September, driven by buying in tech, defense, and shipbuilding stocks, with a roughly 68 percent gain so far this year—over 23 percent since September and 15 percent this month alone. It broke the 4,000 mark for the first time on Monday after surpassing 3,500 earlier in October.
Trading volume was moderate at 405.3 million shares valued at 19.5 trillion won (about $13.6 billion), with losers outnumbering winners 499 to 379. Foreign investors net sold 1.6 trillion won, while retail and institutional investors net bought 1.6 trillion won and 92.6 billion won, respectively.
"The KOSPI took a breather after reaching a record high the previous session, as investors either locked up profits or took to the sidelines as major events such as the U.S.-China summit meeting neared," said Lee Kyoung-min, an analyst from Daishin Securities.
Eyes are on the Wednesday meeting between President Lee Jae Myung and U.S. President Donald Trump, where details of South Korea's $350 billion investment pledge to the United States are expected to be discussed. The Fed's rate-setting meeting is also slated for later this week.
Most large-cap stocks declined: Samsung Electronics fell 2.45 percent to 99,500 won, SK hynix dropped 2.62 percent to 521,000 won (with third-quarter earnings due Wednesday), Hyundai Motor retreated 1.57 percent to 250,500 won, Hanwha Aerospace dipped 4.14 percent to 996,000 won, and KB Financial Group slid 1.36 percent to 116,400 won. In contrast, battery maker LG Energy Solution rose 3.03 percent to 510,000 won, and Kakao gained 4.6 percent to 63,700 won.
The Korean won traded at 1,437.7 per U.S. dollar at 3:30 p.m., down 6 won from the prior session. Bond yields were mixed: the three-year Treasury yield rose 1.3 basis points to 2.633 percent, while the five-year note yield edged down 0.5 basis point to 2.751 percent.