Bond Yield Shock Sends KOSPI Down 5%+, Yet the Won Strengthens

Late in the session KOSPI slid to 6,474.95, down 5.75%, and KOSDAQ dropped to 829.24, down 0.59% — both indexes fell harder than an hour ago (KOSPI 0.47 points worse, KOSDAQ 0.44 points worse), so the mood clearly soured. Overnight US long-term yields spiked and Iran tension plus a jump in oil prices rattled the big caps like Samsung Electronics and SK Hynix, while institutions dumped about 795.1 billion won worth of KOSPI shares to deepen the drop (foreigners held the line with 91.4 billion won in net buying). Funny thing though — even as stocks are getting shaken, the won just dropped into the 1,300s against the dollar for the first time in ten and a half months, going its own way instead of wobbling along with equities. My Microsoft, NVIDIA, and Freeport-McMoRan positions are still sitting in the green, only HD Hyundai Electric is red, so my scoreboard hasn't really changed. With about ninety minutes left before close, I'm watching whether yields keep climbing and whether the institutional selling eases up.