Seoul:South Korean stocks declined for the sixth consecutive session on Wednesday due to ongoing concerns about excessive spending on artificial intelligence (AI) as investors remained cautious ahead of the U.S. inflation data release. The Korean won strengthened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) lost 26.54 points, or 0.44 percent, closing at 6,008.81. This continued a downward trend that began last Tuesday, which included a significant 5.46 percent drop on the previous day.
The index initially opened 0.44 percent higher and rose by 2.57 percent around 934 a.m., following comments by New York Fed President John Williams, who indicated no further monetary tightening would be necessary next year. However, the gains were wiped out following a less favorable sales outlook from Dutch tech giant ASML, which provides chip manufacturing equipment to major companies like Samsung Electronics.
"The KOSPI erased all of its gains after ASML's earnings report," said Seo Sang-young, a senior analyst at Mirae Asset Securities. "Investors are also awaiting U.S. consumer prices data later in the day." The trading volume was moderate, with 350.8 million shares worth 19.9 trillion won (US$14.9 billion) changing hands, and gainers outnumbering decliners 502 to 369.
Foreign investors and individuals sold a net total of 1.18 trillion won and 309.3 billion won in stocks, respectively, counterbalancing the 808.3 billion won net purchase by institutions. Semiconductor stocks were down, with SK hynix decreasing by 1.66 percent to 1.42 million won, and Hanmi Semiconductor falling by 5.02 percent to 217,500 won. Samsung Electronics remained unchanged at 232,000 won.
Bank shares also struggled, as Hana Financial Group fell 2.25 percent to 121,600 won and KB Financial Group dropped 1.97 percent to 159,200 won. Lotte Shopping, a major retailer, fell by 4.47 percent to 89,800 won, while Samyang Foods decreased by 2.47 percent to 1.14 million won.
In contrast, LG Energy Solution, a leading battery maker, rose by 2.93 percent to 422,000 won, and SK Innovation, a top oil refinery, increased by 4.08 percent to 163,200 won. CJ ENM, a leading production studio, soared 6.9 percent to 37,950 won, and cosmetics manufacturer APR climbed 4.06 percent to 294,500 won.
The Korean won was quoted at 1,338.3 won against the U.S. dollar as of 330 p.m., up 6.8 won from the previous session's close.