Seoul:South Korean shares opened sharply lower on Tuesday, influenced by significant losses in major technology stocks. This development came as investors sought to capitalize on recent gains while expressing concerns over investments in the artificial intelligence (AI) value chain.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) fell 130.58 points, or 2.26 percent, to 5,637.43 at 915 a.m., despite overnight gains on Wall Street. The index had previously risen for two consecutive sessions following a sharp dip related to AI sector concerns, which contributed to a combined 20.7 percent decline over seven trading sessions from October 6 to the previous Thursday.
Overnight in the United States, stock market performance was mixed. Technology shares experienced a rebound from their steepest weekly drop since June, with the Dow Jones Industrial Average slightly decreasing by 0.07 percent, the S&P 500 increasing by 0.41 percent, and the Nasdaq Composite Index gaining 1.11 percent to close at 26,430.89.
In Seoul, technology stocks led the market decline. Samsung Electronics, a market leader, dropped 1.38 percent, while its competitor SK hynix saw a decline of 4.07 percent. Additionally, Samsung Electro-Mechanics, an affiliate of Samsung Electronics specializing in electronic components, lost 2.22 percent.
Meanwhile, the Korean won was trading at 1,326.2 won against the U.S. dollar at 915 a.m., marking an increase of 6.9 won from the previous stock trading session's close.