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KOSPI Reverses Sharp Early Rally to Fall 1.63% as Mideast Tensions and Institutional Selling Weigh In

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Earnings News: Micron Technology Inc (NASDAQ: MU)

SEOUL — South Korea’s benchmark KOSPI index fell 114.01 points, or 1.63%, to 6,863.93 as of 3:19 p.m. local time Tuesday, reversing a sharp early-session rally that had briefly pushed the index back above the 7,200 mark, as institutional selling and renewed concern over Middle East instability weighed on investor sentiment.

The index’s dramatic intraday swing unfolded over the course of the trading day. According to Trading Economics, the KOSPI opened Tuesday’s session with gains exceeding 3%, briefly reclaiming the 7,200 level for the first time in recent sessions, only to steadily give back those gains as the day progressed. By 1:50 p.m. local time, the index had fallen back to 6,925.65, down 0.75% from the previous session, before losses deepened further into the afternoon close.

According to reporting from the Asia Business Daily, the reversal was driven primarily by heavy selling from institutional investors, who were net sellers of 660.6 billion won during the session, even as both individual and foreign investors remained net buyers. Individual investors purchased a net 373.4 billion won worth of shares, while foreign investors added a net 346 billion won, underscoring a split between retail and foreign buying interest on one side and institutional caution on the other.

The broader shift in sentiment coincided with escalating concerns over instability in the Middle East. According to Trading Economics, global risk appetite was limited Tuesday after the expiration of a 60-day window for the United States and Iran to reach a peace agreement passed without an extension, heightening fears of renewed conflict and potential disruptions to oil supplies moving through the Strait of Hormuz. That uncertainty pushed oil prices higher and lifted U.S. Treasury yields, dynamics that have historically weighed on risk appetite for export-driven, semiconductor-heavy markets such as South Korea’s.

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Adding a further headwind for South Korean exporters, the United States imposed a 15% tariff on South Korean drones and related components, while separately flagging the country for risks tied to China-linked transshipment activity, according to Trading Economics. Investors have also continued closely monitoring ongoing trade negotiations between Seoul and Washington, as South Korea works to resolve outstanding issues connected to its previously announced $200 billion investment commitment to the United States.

Tuesday’s reversal followed a period of strong gains for the KOSPI heading into the new trading week. The index climbed 2.42% to close at 6,978 points last Friday, extending a rally to its highest level in more than three weeks, driven by strength in U.S. stocks and semiconductor shares. That advance came after the S&P 500 reached a fresh record high following a U.S. producer price report that showed prices unchanged in July, below expectations, easing broader inflation concerns and reducing expectations for further Federal Reserve tightening.

The improved risk sentiment heading into Friday’s session had lifted Asian technology stocks broadly, with SK Hynix jumping 3.26% and Samsung Electronics advancing 2.43% that day. Other notable gainers included SK Square, up 3.31%, Hyundai Motor, up 8.24%, LG Energy Solution, up 1.09%, HD Hyundai Heavy Industries, up 2.82%, Kia Corporation, up 3.13%, and Hyundai Mobis, up 7.05%, according to Trading Economics data. The KOSPI had been closed Monday for a substitute public holiday marking Liberation Day, meaning Tuesday’s session represented the market’s first opportunity to react to developments over the extended weekend, including the expiration of the U.S.-Iran negotiating window.

The KOSPI’s swings over the past several weeks illustrate a market that has continued to experience extraordinary volatility throughout 2026. According to Investing.com data, the index has traded within a 52-week range spanning from 3,079.27 to 9,385.59, and remains up 116.33% over the trailing 12 months despite the sharp reversals that have periodically interrupted its overall upward trajectory this year. Earlier in the year, the index suffered a series of historic single-day collapses, including a 10.84% overnight plunge that dragged Samsung Electronics down 13.39% and SK Hynix down 14.65% in a single session, alongside a separate episode in which the index fell below the 8,000 level and triggered a sell-side sidecar, part of a stretch of market volatility that at one point surpassed the sidecar and circuit-breaker activation record previously set during the 2008 global financial crisis.

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Samsung Electronics and SK Hynix together account for roughly half of the KOSPI’s total market capitalization, meaning swings in the two chipmakers’ share prices have continued to serve as the primary driver of the broader index’s dramatic movements throughout the year, a pattern that held true again during Tuesday’s sharp intraday reversal.

South Korean President Lee Jae-myung has continued to emphasize efforts to strengthen the country’s capital markets and address the long-standing valuation gap between Korean equities and their global peers, often referred to as the “Korea discount.” Following an earlier milestone in which the index first surpassed the 6,000 level, Lee reaffirmed his administration’s commitment to structural reforms aimed at driving a broader re-rating of Korean equities, a policy priority that has continued to underpin investor interest in the market even amid its persistent volatility.

With the U.S.-Iran negotiating deadline now expired and South Korea’s own trade discussions with Washington still ongoing, investors are likely to remain focused in the coming days on how developments in the Middle East evolve, alongside any further updates on South Korea’s $200 billion investment commitment and the broader tariff landscape facing Korean exporters. Given the KOSPI’s demonstrated pattern of sharp single-session reversals throughout 2026, market participants are likely to brace for continued volatility as the index navigates this latest combination of geopolitical uncertainty and shifting institutional positioning.

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Ichthys deal buys peace, raises stakes

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Ichthys deal buys peace, raises stakes

OPINION: Industrial action on major resources projects will reset the baseline for every negotiation.

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Signals across the Pacific

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Signals across the Pacific

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Hindustan Copper, Vedanta, other metal stocks slip up to 2% after sharp gains. Should you buy the dip or avoid?

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Hindustan Copper, Vedanta, other metal stocks slip up to 2% after sharp gains. Should you buy the dip or avoid?
Shares of metal companies dropped up to 2% on Tuesday, after recording sharp gains in the previous session, with analysts advising investors to view profit-booking-led corrections as buying opportunities.

Nifty Metal dropped half a per cent amid an overall bearish market sentiment on Tuesday, with NMDC shares falling more than 2% to lead losses. Hindustan Copper shares lost over 1%, after rallying around 8% in the previous session.

Today’s fall in metal stocks comes as metal prices corrected after hitting multi-month highs the previous day. Copper prices fell as the market digested a string of disappointing economic data from China, and the US-Iran truce expired without a longer-term peace deal. This comes a day after the red metal hit its highest in more than six months on Monday amid worries around availability on the London Metal Exchange, where inventories are at their lowest since February.

Gold and silver prices also declined in the domestic market, although the precious metals extended gains in the international market.

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Also read | Gold slips below Rs 1.55 lakh/10 gm on MCX, but global prices extend gains. What’s next?

Should you buy metal stocks?

Metal stocks are reacting to a decent recovery in underlying metal prices, said Sunny Agrawal, Head of Fundamental Research at SBI Securities. He noted that copper, aluminium, zinc and silver prices are up by 6%, 4%, 8% and 12% respectively over the last month.
“Investors can selectively participate in a few names like Nalco and Hindustan Zinc. Traders should adhere to stop loss to factor in sudden correction in the underlying metal prices which is a function of many factors including dollar index, global demand supply etc,” Sunny Agrawal from SBI Securities said.

Technical view

One of the better ways to assess the outlook for a basket of stocks is to study the corresponding sectoral index, as it provides a broader representation of the underlying group, said Hitesh Rathi, Technical Analyst at Angel One. “In this context, the Nifty Metal index had been trending lower since May this year, with the sectoral index forming a 100% bearish pole on its 0.25% × 3 point and figure chart. This resulted in a correction of over 10% in the index, translating into a sharper decline across several metal stocks,” he explained, adding that the technical setup now appears to be turning constructive.

The sectoral index seems to have established a strong support zone in the 12,500–12,400 band, underscored by the formation of a weak breakout on its daily 1% renko chart, he added. Following this development, the index has already rallied by over 5% in a relatively short period, indicating a meaningful improvement in momentum.

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The combination of a well-defined support zone and the bullish breakout formation suggests the presence of strong demand at lower levels and points towards a potential reversal in the broader trend, according to the analyst. “That said, given the sharp upmove witnessed recently, chasing momentum at current levels may not offer the most favourable risk-reward proposition. Instead, any retracement towards the 12,800–12,700 band should be viewed as an opportunity to accumulate select metal stocks, with the broader sectoral setup now turning increasingly constructive,” Rathi concluded.

Also read | Paytm block deal: Vijay Shekhar Sharma’s Resilient Asset likely sells nearly 2 crore shares worth Rs 2,949 crore

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Huber+Suhner H1 2026 slides: record orders offset by margin pressure

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Huber+Suhner H1 2026 slides: record orders offset by margin pressure

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Aussie shares flat as health stocks, BHP limit losses

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Aussie shares flat as health stocks, BHP limit losses

Australia’s share market has ended the session slightly lower, despite outsized gains in BHP and healthcare stocks ultimately shielding broader market weakness.

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Artisan Floating Rate Fund Q2 2026 Commentary

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Artisan Floating Rate Fund Q2 2026 Commentary

Artisan Partners is a global investment management firm that provides a broad range of high value-added investment strategies in growing asset classes to sophisticated clients around the world. Since 1994, the firm has been committed to attracting experienced, disciplined investment professionals to manage client assets. Artisan Partners’ autonomous investment teams oversee a diverse range of investment strategies across multiple asset classes. Strategies are offered through various investment vehicles to accommodate a broad range of client mandates.
This site is intended for use with US institutional investors which includes corporate and public retirement plans, foundations, endowments, trusts and their consultants. Note: This account is not managed or monitored by Artisan Partners, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use the firm’s official channels.

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Colgate-Palmolive shares fall over 2% after Investor Day. What Goldman Sachs and other brokerages are saying

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Colgate-Palmolive shares fall over 2% after Investor Day. What Goldman Sachs and other brokerages are saying
Shares of Colgate-Palmolive slipped 2.35% on Tuesday following its Investor Day 2026 presentation. Investors appeared cautious as management outlined strategic priorities that balance aggressive brand investments with long-term profitability goals, causing the stock to slide to an intra-day low of Rs 1,965 on the BSE.

Should you buy, sell or hold the stock?

In an analyst note reported by ET Now, Goldman Sachs maintained its Neutral rating on Colgate Palmolive with a target price of Rs 2,050, implying a modest upside from current levels. The brokerage highlighted that Colgate’s strategy is aggressively pivoting toward volume recovery, premiumization, and category expansion. ET Now reported that while heavy step-ups in brand spending and advertising intensity could weigh on operational margins over the short term, structural cost savings from the company’s ‘Funding the Growth’ initiative will help cushion profitability.
Motilal Oswal maintained its Buy rating on Colgate Palmolive with a target price of Rs 2,500, implying a 27% upside from current levels. The brokerage noted that the core investment thesis remains intact as Colgate continues to lead and drive category expansion in India. It highlighted strong traction in science-led innovations like Colgate Strong Teeth with Arginine and rapid scaling in premium offerings such as Visible White Purple. Motilal Oswal expects sales to reach Rs 66.5 billion in FY27E and Rs 71.2 billion in FY28E, supported by steady volume execution and segment leadership.

Nuvama maintained its Buy rating on Colgate Palmolive with a target price of Rs 2,350, implying a 22.5% upside from current levels. The brokerage highlighted the company’s persistent focus on driving oral care penetration and expanding market reach. It noted that 45% of rural Indians still do not brush daily and 76% of urban Indians do not brush twice a day. Nuvama added that management’s decision to allocate roughly 16% of revenues toward brand building underscores a strategy centred on long-term category expansion over short-term margin maximisation, backed by a distribution footprint across 7.1 million stores.

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Colgate management commentary

Managing Director Prabha Narasimhan emphasised that Colgate is best placed to lead and expand the oral care category in India. “Our strategy is clear: drive growth ahead of profitability,” management stated, pointing out that premium toothpaste share has expanded 2.5 times compared to 2021 levels and direct retail coverage now reaches 1.7 million outlets.


(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)

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Nomura Mid Cap Growth Fund Q2 2026 Commentary

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Nomura Mid Cap Growth Fund Q2 2026 Commentary

Nomura Mid Cap Growth Fund Q2 2026 Commentary

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Biocon shares rise 2% after USFDA approval for Yesintek single-dose prefilled autoinjector

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Biocon shares rise 2% after USFDA approval for Yesintek single-dose prefilled autoinjector
Shares of Biocon rose 2% to Rs 420.25 on the BSE on Tuesday, after the company’s subsidiary in the United States received supplemental U.S. Food and Drug Administration (FDA) approval for Yesintek 45 mg/0.5 ml single-dose prefilled autoinjector and Yesintek 90 mg/ml single-dose prefilled autoinjector.

According to a regulatory filing by the company on the BSE, the Yesintek single-dose prefilled autoinjector offers patients with another important treatment option. This new delivery format supports more tailored treatment approaches across different care settings and patient needs.

“This supplemental approval enhances Biocon’s comprehensive portfolio of immunology products in the United States and reaffirms the company’s commitment to improving access to affordable medicines for patients around the world,” the company said, as per the regulatory filing.

Yesintek is indicated for the treatment of moderate to severe plaque psoriasis and active psoriatic arthritis in adult and pediatric patients who are six years of age and older, and moderate to severely active Crohn’s disease and ulcerative colitis in adults, thereby treating a range of debilitating autoimmune conditions that affect tens of thousands of Americans.

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Biocon Q1 Results

The company reported a net profit of Rs 141 crore in the June quarter of FY27. It reported a 10% year-on-year increase in consolidated operating revenue to Rs 4,336 crore, driven by strong growth in the Biopharma business. Biopharma revenue grew 17% YoY, driven by momentum from recent biosimilar and generic product launches across key markets.


Consolidated EBITDA stood at Rs 902 crore, with a margin of 21%, supported by improved profitability in the Biopharma business, which helped offset continued challenges in the Services business.

Biocon Share Price

Shares of Biocon have gained nearly 3% in the last three months. However, the shares have slipped over 7% over the last six months.

The shares of the drugmaker have declined over 9% in 2026 so far. In the longer term, Biocon shares have fallen over 4% over one year, but have delivered 19% returns over three years and 39% returns over five years.

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U.S. Health Insurers Raise Outlooks Despite Q2 Cost Rises, Shifting Membership

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U.S. Health Insurers Raise Outlooks Despite Q2 Cost Rises, Shifting Membership

U.S. Health Insurers Raise Outlooks Despite Q2 Cost Rises, Shifting Membership

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