Seoul:Seoul stocks experienced a significant downturn late Thursday morning as worries over investments in the artificial intelligence (AI) value chain led to a sell-off in major chip shares. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 129.12 points, or 2.25 percent, reaching 5,605.54 by 1120 a.m.
According to Yonhap News Agency, after an initial decline of 1.14 percent at the opening, the index continued to fall due to apparent profit-taking activities. Meanwhile, U.S. stocks showed mixed results overnight, with AI-related shares rebounding post the announcement of SpaceX's quarterly results. The Dow Jones Industrial Average increased by 0.69 percent, the S&P 500 rose by 0.58 percent, and the Nasdaq Composite, known for its tech-focus, gained 1.05 percent.
In Seoul, the technology sector was primarily responsible for the decline. Notable chipmakers, Samsung Electronics and SK hynix, saw their shares decrease by 3.36 percent and 3.63 percent, respectively. Samsung Electro-Mechanics Co., an affiliate of Samsung Electronics, experienced a slight dip of 0.98 percent despite opening higher following news of collaboration with Nvidia.
The Korean won was trading at 1,324 won against the U.S. dollar as of 1120 a.m., marking an increase of 2 won from the previous session's close.