Seoul:Shares in Seoul continued their downward trend late Tuesday morning due to rising concerns over competition from China and artificial intelligence (AI) valuations, coinciding with the anticipation of major corporate earnings reports and the upcoming release of U.S. inflation data.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) opened 3.1 percent lower and fell by 386.25 points, or 6.05 percent, to 5,997.99 by 1120 a.m. Foreign investors sold a net 2.3 trillion won (US$1.7 billion) in stocks, while institutional and individual investors purchased a net 808.9 billion won and 1.27 trillion won, respectively.
In the U.S., stock markets ended mixed overnight, with the Dow Jones Industrial Average increasing by 0.38 percent, while the Nasdaq Composite, which is heavily weighted towards technology stocks, decreased by 0.44 percent. Market participants are closely monitoring the U.S. consumer price index report set to be released on Wednesday, which may provide insights into the Federal Reserve's policy direction before its October meeting.
In Seoul, technology stocks were at the forefront of the decline. Samsung Electronics saw a drop of 7.29 percent, and SK hynix fell by 8.35 percent. Other notable declines included Hanwha Aerospace at 5.34 percent and Hyundai Motor at 5.78 percent. On the upside, Hybe, the management agency for K-pop band BTS, gained 2.6 percent, and shipping company HMM increased by 0.23 percent.
The Korean won was trading at 1,339.45 against the U.S. dollar by 1120 a.m., marking a decrease of 3.65 won from its previous close.