Seoul stocks closed lower as investors faced uncertainties in the artificial intelligence (AI) sector, following news of an internal probe at Nvidia Corp. after allegations that its CEO was targeted by a Chinese spy. The local currency, however, strengthened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) fell by 40.84 points, or 0.81 percent, closing at 5,018.85. The trading volume was light, with 231.8 million shares worth 17.26 trillion won (US$12.8 billion) exchanging hands. The market saw more losers than winners, with 527 stocks declining and 340 advancing.
Foreign and retail investors were net sellers, collectively offloading a net 1.18 trillion won, while institutional investors purchased a net 717.1 billion won. Lee Kyoung-min, an analyst from Daishin Securities, noted that investors were searching for direction amid continued bargain hunting in semiconductors. These stocks regained some ground as concerns over the future of AI data centers eased following the Democrats' victory in the U.S. midterms. Nonetheless, the scandal involving Nvidia's CEO, Jensen Huang, added to market jitters.
Nvidia announced it would begin an internal investigation into Huang's alleged affair with a suspected Chinese spy. In a message to Nvidia employees, Huang admitted to being unfaithful and took full responsibility for his actions.
In the Seoul market, most large-cap shares closed lower, although semiconductors showed strength. Samsung Electronics increased by 0.64 percent to 189,900 won, while SK hynix rose by 0.35 percent to 1,136,000 won. Meanwhile, LG Energy Solution dropped 5.78 percent to 318,000 won, Hyundai Motor fell 2.86 percent to 271,500 won, and Hanwha Aerospace decreased 3.18 percent to 639,000 won.
The Korean won was quoted at 1,347.1 won against the U.S. dollar, an increase of 9.5 won from the previous session's close.