Seoul stocks concluded lower on Monday as investors navigated uncertainties in the artificial intelligence (AI) sector, including an internal investigation at Nvidia Corp. following allegations against its CEO. The local currency gained strength against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) fell 40.84 points, or 0.81 percent, finishing at 5,018.85 after volatile trading. The trading volume was light, with 231.8 million shares exchanged worth 17.26 trillion won (US$12.8 billion), and the number of losing stocks outpaced gainers 527 to 340.
Foreigners and retail investors were net sellers, disposing of a combined net 1.18 trillion won, while institutional investors bought a net 717.1 billion won. Analyst Lee Kyoung-min from Daishin Securities noted that investors were seeking direction amid ongoing bargain hunting in the semiconductor sector. Semiconductors saw some recovery as concerns about AI data centers' future lessened following the Democrats' victory in the U.S. midterms. However, the scandal involving Nvidia's CEO Jensen Huang added to market jitters.
Nvidia announced it would initiate an internal investigation into Huang's alleged involvement with a suspected Chinese spy. Huang acknowledged his infidelity and took full responsibility for his actions in a message to Nvidia employees.
In Seoul, while most large-cap shares ended lower, semiconductors showed strength. Samsung Electronics increased by 0.64 percent to 189,900 won, and SK hynix rose by 0.35 percent to 1,136,000 won. Conversely, LG Energy Solution, Hyundai Motor, and Hanwha Aerospace saw declines.
The Korean won rose to 1,347.1 won against the U.S. dollar by 330 p.m., up 9.5 won from the last session's close. Bond prices fell, with yields on three-year Treasurys and five-year government bonds increasing by 2.6 and 1.4 basis points, respectively.