Seoul: South Korean stocks started sharply lower Wednesday on news that the United States has launched new strikes on Iran and overnight tech losses on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) shed 197.16 points, or 2.43 percent, to 7,899.77 at the opening bell.
According to Yonhap News Agency, the U.S. has struck Iran in response to the shooting down of an American Apache helicopter in the Strait of Hormuz, which sapped investors' risk appetite. Market sentiment was also weighed down as doubts over the valuation of stocks related to artificial intelligence (AI) resurfaced on a disappointing earnings forecast for Broadcom and news that Crusoe Energy Systems, a data center developer, suspended one of its projects upon the request of an unidentified big tech customer.
The tech-heavy Nasdaq composite closed 0.97 percent lower, and the S and P 500 dropped 0.26 percent, while the Dow Jones Industrial Average rose 0.17 percent. Major tech shares led the market decline, with Broadcom losing 1.12 percent, Apple sliding 3.64 percent, Micron falling 1.4 percent, and Nvidia down 0.2 percent.