29.08.202502:01:41UTC+00South Korean Shares Fall on Financial and Energy Losses

The KOSPI index declined by 0.15% to approximately 3,191 on Friday, bringing an end to its two-day rally. This downturn was primarily due to weaknesses in financial and energy stocks, which overshadowed positive indicators of resilience in South Korea's economy. In the financial sector, stocks fell following the Bank of Korea's decision to maintain interest rates at 2.5%, while also hinting at potential rate cuts in the next three months. This decision raised concerns about banks' lending margins, leading to notable losses for Shinhan Financial Group, which fell 1.21%, and KB Financial Group, down by 0.18%. The energy sector also experienced declines following reports of a major restructuring in the petrochemical industry, which will reduce naphtha-cracking capacity. Consequently, SI Resources dropped by 3.05%, and SK Innovation decreased by 1.17%. Despite these declines, there was optimism from recent data showing the economy's resilience: industrial output rose by 0.3% in July for the second consecutive month, retail sales soared by 2.5%, and facility investment saw a robust rebound of 7.9% after a four-month decline.