South Korea's KOSPI slid as far as the 6,100 level intraday on foreign investors' net selling of nearly 1 trillion won, before recouping most losses to finish trading around 6,250. Semiconductor shares including SK Hynix weakened, while buying flowed into secondary battery, biotech and defence shares.

On Aug. 7, the KOSPI closed down 37.61 points, or 0.60 percent, at 6,258.77. The index opened up 68.69 points, or 1.09 percent, at 6,365.07 and rose to the 6,400 level early. It later fell to the 6,100 level as foreign selling increased, but narrowed losses in the afternoon.

In the main bourse, foreign investors net sold 976.1 billion won. Institutions and retail investors net bought 780.8 billion won and 183.2 billion won, respectively.

Samsung Electronics closed up 0.22 percent at 231,000 won. SK Hynix fell 4.88 percent to 1,422,000 won.

SK Square rose 3.20 percent, Samsung Electro-Mechanics gained 3.99 percent, LG Energy Solution added 4.35 percent, Samsung Biologics rose 2.77 percent, KB Financial Group gained 2.51 percent and Hanwha Aerospace climbed 4.08 percent.

Hyundai Motor fell 1.13 percent to 395,500 won.

The KOSDAQ ended down 2.87 points, or 0.36 percent, at 798.80. It slipped back below the 800 level as a recent streak of KOSDAQ strength halted.

In the Seoul foreign exchange market, the won was quoted at 1,417.10 per dollar, up 7.40 won from the previous session.

Han Ji-young (한지영), a researcher at Kiwoom Securities, said it was excessive to interpret the recent KOSPI weakness as the end of a recovery path. She said short-term supply digestion could be repeated, but mid-term recovery conditions are strengthening, including upward revisions to earnings forecasts and valuation appeal.