South Korean stock markets face volatility amid semiconductor sell-offs

South Korean equity markets showed mixed performance following the Chuseok holiday. The KOSPI faced downward pressure, at times dropping below the 7,000 level, driven by heavy selling from foreign and institutional investors. Major semiconductor players Samsung Electronics and SK Hynix saw declines, even as their large-scale share buyback programs—totaling over 39 trillion won—approach completion.

Market volatility is being influenced by rising U.S. Treasury yields and concerns regarding the Bank of Japan's potential interest rate hikes in October, which raise fears of yen carry trade unwinding. Conversely, the KOSDAQ showed resilience, supported by foreign buying and strength in the biotechnology sector.

Investors are closely monitoring upcoming macroeconomic indicators, including U.S. employment data, inflation metrics, and Micron's earnings report, to determine the next direction for semiconductor stocks and broader market liquidity.