[Edaily Reporter Kim Kyung-eun ] The KOSPI index is down by more than 3% in early trading on the 31st. This is due to the increased likelihood of further monetary tightening following hawkish (in favor of monetary tightening) remarks by U.S. Federal Reserve (Fed) Chair Kevin Warsh. Additionally, forecasts that China’s Changxin Memory (CXMT), whose first-half revenue surged, will pose a threat to established memory market leaders SamsungElectronics and SK hynix are also seen as dragging down the index.

According to MP Doctor, as of 9:10 a.m. today, the KOSPI was trading at 6,581.24, down 207.64 points (3.06%) from the previous trading day. The index opened at 6,613.58, down 175.30 points (2.58%) from the previous close, and has since extended its losses.

The growing possibility of a September interest rate hike is cited as the main reason for the index’s decline. Fed Chair Wash expressed strong caution regarding inflation at the Jackson Hole Economic Symposium held in Wyoming on the 28th (local time).

Additionally, as military tensions between the U.S. and Iran escalated again over the weekend, international oil prices rose by more than 1%. Concerns also grew that strong earnings from China’s CXMT could pose a medium- to long-term competitive threat to SamsungElectronics and SK hynix. CXMT’s revenue for the first half of this year surged 873.6% year-over-year to 150.31 billion yuan (approximately 30.8 trillion won).

In today’s market, retail investors were net buyers of 262.2 billion won, while foreign and institutional investors were net sellers of 196.5 billion won and 102.7 billion won, respectively.

By sector, declines were particularly pronounced in machinery and equipment, medical and precision instruments, construction, telecommunications, and securities.

The two stocks with the highest market capitalization— SamsungElectronics(005930)and SK hynix(000660)—are also both down by around 3%. SamsungElectronics is trading at 249,000 won, down 8,000 won (3.11%) from the previous trading day. SK hynix is trading at 1,601,000 won, down 52,000 won (3.15%).

Among other top-market-cap stocks, SKSQUARE(402340)(-3.11%), SamsungElectroMechanics(009150)(-3.87%), HyundaiMotor(005380)(-1.63%), SAMSUNG BIOLOGICS(207940)(-1.95%), and Samsung Life Insurance(032830)(-1.77%) are also down. In contrast, LG Energy Solution(373220)(0.95%) and HANWHA AEROSPACE(012450)(0.26%) are showing slight gains.

At the same time, the KOSDAQ index is trading at 808.69, down 29.72 points (3.54%) from the previous trading day. The index opened at 821.67, down 16.74 points (2.00%) from the previous close, and has continued its downward trend.

By investor type, retail investors are net buyers of 97.7 billion won, while foreign and institutional investors are net sellers of 31.5 billion won.

Among the top market-cap stocks, Alteogen Inc.(196170)is trading at 300,500 won, down 19,500 won (6.09%) from the previous trading day. ECOPRO CO., LTD(086520)is trading at 90,600 won, up 400 won (0.44%), remaining largely unchanged.

In addition, ECOPRO BM CO., LTD.(247540)(0.42%), ROBOTIS(108490)(0.41%), and SILICON 2 Co.,Ltd.(257720)(0.94%) are showing slight gains. On the other hand, most of the top-ranked stocks—including Rainbow Robotics(277810)(-2.74%), JUSUNG ENGINEERING Co.,Ltd.(036930)(-3.62%), WONIK IPS Co.,Ltd.(240810)(-3.69%), and LEENO Industrial Inc(058470)(-2.84%)—are trading lower.