Seoul:South Korean shares started the trading day on a downward trend Thursday, following a sharp rise in the previous session. The decline comes as investors are increasingly worried about the profitability of investments in artificial intelligence (AI) infrastructure.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) opened 1.14 percent lower and further dropped 24.68 points, or 0.46 percent, to 5,710.98 by 915 a.m.
The dip in Seoul followed a mixed closing in U.S. markets, where AI-related stocks saw a rebound after SpaceX released its quarterly results. The Dow Jones Industrial Average increased by 0.69 percent, the S&P 500 by 0.58 percent, and the tech-heavy Nasdaq Composite by 1.05 percent. Meta Platforms made a significant move by bolstering its investment in the AI sector following robust earnings.
In the Seoul market, most large-cap shares saw a decline. Samsung Electronics, despite opening lower, managed a slight increase of 0.34 percent. In contrast, its competitor SK hynix experienced a 0.31 percent drop. LG Energy Solution saw a substantial decrease of 3.65 percent, whereas Samsung Electro-Mechanics, a Samsung Electronics affiliate specializing in electronic components, surged by 4.79 percent.
The Korean won was trading at 1,326.5 won against the U.S. dollar at 915 a.m., reflecting a slight increase of 0.5 won from the previous session's close.