SEOUL, South Korea — South Korean stocks edged lower for a second straight session on Tuesday, as persistent foreign selling, surging U.S. Treasury yields and high oil prices kept the benchmark index below the closely watched 7,000 mark.

The Korea Composite Stock Price Index, or KOSPI, closed at 6,870.81, down 18.93 points, or 0.27%, from Monday's close of 6,889.74, according to the Korea Exchange.

The decline was far smaller than Monday's steep drop, as the index recovered some of its early losses during the session. The KOSPI opened 45.33 points, or 0.66%, lower at 6,844.41 before bargain hunters stepped in to trim the losses.

Foreign investors keep selling

Foreign investors were heavy sellers again on Tuesday. They sold a net 192.9 billion won ($141 million) worth of shares on the main board immediately after the market opened, while individual and institutional investors were net buyers.

By late morning, foreign investors had sold more than 1 trillion won ($762 million) worth of shares, weighing on the index even as some chip stocks recovered.

The selling followed a sharp sell-off on Monday, the first trading day after the Chuseok harvest holiday. The KOSPI tumbled 2.70% that day to close below 7,000 for the first time in four sessions, as foreign investors sold a net 3.24 trillion won and institutions sold 1.02 trillion won.

US yields and oil weigh on sentiment

Market sentiment was weighed down by a surge in U.S. borrowing costs and rising oil prices after talks between Washington and Tehran stalled.

The United States rejected an........

© International Business Times