Seoul:Seoul shares opened sharply lower Tuesday due to losses in U.S. technology stocks, which negatively impacted investor sentiment. This comes ahead of major companies' earnings reports and the anticipated release of U.S. inflation data.
According to Yonhap News Agency, after opening 3.1 percent down, the benchmark Korea Composite Stock Price Index continued to fall, trading at 6,126.65 points, down 257.59 points or 4.03 percent, by 915 a.m.
Overnight, U.S. markets showed mixed results with the Dow Jones Industrial Average increasing by 0.38 percent, while the Nasdaq Composite, heavily weighted with tech stocks, fell by 0.44 percent. Investors are closely watching the U.S. consumer price index report expected on Wednesday, which may provide insights into the Federal Reserve's policy direction ahead of its October meeting.
In Seoul, technology stocks were at the forefront of the decline. Samsung Electronics saw a drop of 4.79 percent, and SK hynix, its competitor in chipmaking, fell by 5.61 percent. Hanwha Aerospace, a significant player in defense, decreased by 3.71 percent, and Hyundai Motor, a leading car manufacturer, was down by 5 percent.
On the other hand, some companies experienced gains. Hybe, the entertainment agency behind the K-pop sensation BTS, rose by 1.47 percent, and SM, a competing entertainment agency, increased by 1.8 percent.
The Korean won was trading at 1,335.70 against the U.S. dollar, which is an increase of 0.1 won from the previous session's close.