South Korean equities extended their decline for a third consecutive session, with the benchmark KOSPI index weighed down by sustained selling from overseas investors.
The downward pressure persisted despite Samsung Electronics Co. reporting better-than-expected earnings, indicating that corporate fundamentals are currently secondary to broader market sentiment and regulatory headwinds.
The sell-off accelerated after the South Korean government announced additional measures to curb demand for leveraged exchange-traded funds.
These new restrictions aim to cool speculative trading activity, but they have instead exacerbated investor anxiety and triggered further outflows.
The policy move underscores authorities' concern over market stability, even as it dampens liquidity and buying interest in the short term.
Samsung’s preliminary results, which included a forecast for a dramatic 19-fold jump in second-quarter profits, failed to provide a floor for the market.