Seoul:Seoul stocks opened sharply lower as investor sentiment was dampened by concerns over the sustainability of artificial intelligence (AI) and hotter-than-expected inflation in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) opened down 335.8 points, or 5.59 percent, to 5,673.01, marking a continued losing streak for the past six consecutive sessions.
According to Yonhap News Agency, major stock indexes on Wall Street also closed lower overnight due to growing inflation concerns and skepticism about the AI boom meeting investor expectations. The S&P 500 fell by 1.11 percent, and the tech-heavy Nasdaq declined by 1.88 percent.
The U.S. Consumer Price Index rose by 0.6 percent in September from the previous month, which increased the annual rate of inflation to 3.7 percent, surpassing economists' expectations of a 3.6 percent rise. Additionally, investors remained doubtful about whether AI investments could yield the anticipated returns.