Seoul:Seoul stocks opened sharply lower on Friday, reflecting a significant overnight decline on Wall Street as concerns over a potential Democratic sweep in Congress raised fears about the future of data center investments.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) dropped by 460.33 points, or 8.55 percent, to 4,923.47 as of 925 a.m. The KOSPI's steep decline prompted the bourse operator to issue a circuit breaker shortly after the market opened, suspending trading for 20 minutes due to intense selling pressure.
The downturn in Seoul followed a poor performance in major U.S. stock indexes, influenced by the midterm election results. The S&P 500 fell 4.36 percent, and the tech-heavy Nasdaq dropped 5.52 percent, driven by fears that the Democrats' electoral victory could slow down investments in data centers, amid public opposition to such developments.
Contributing to market anxiety was a rise in oil prices after reports that Iranian forces claimed at least five tankers were damaged in the Strait of Hormuz. In Seoul, significant declines were noted among major companies, with Samsung Electronics and SK hynix falling 9.98 percent and 11.63 percent, respectively. Hyundai Motor, KB Financial, and Hanwha Aerospace also saw substantial losses.
The Korean won was quoted at 1,357.4 against the U.S. dollar, a decrease of 1.9 won from the previous session's close.