Seoul shares sharply down late Tues. morning on tech slump
Korean stocks plummeted more than 8 percent late Tuesday morning as investors dumped tech shares amid heightened fears over artificial intelligence (AI) investment.
After opening 5.26 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, falling 580.04 points, or 8.59 percent, to 6,175.71 as of 11:20 a.m. The Korea Exchange (KRX) triggered the marketwide circuit breaker at 10:14 a.m. after the KOSPI plunged more than 8 percent from the previous session's close.
Market sentiment was dragged down by an overnight selloff on Wall Street as investors remained skeptical about tech giants' heavy spending on artificial intelligence (AI).
The PHLX chip index, a gauge of U.S. semiconductor giants, extended its recent selloff, falling 2.2 percent.
In Seoul, most shares traded in negative territory.
Market bellwether Samsung Electronics plunged 9.84 percent, and SK hynix dived 11.67 percent.
Samsung Electro-Mechanics, an electronic component affiliate of Samsung Electronics, plummeted 15.47 percent, and LG Electronics sank 7.43 percent.
Internet giant Naver fell 4 perc
KOSPI Crashes Over 10% in Chip Rout
- Bourse operator issues circuit breaker for KOSPI on sharp fall Korea Times —
- AI stock sell-off continues as investors dump chipmakers Financial Times —
- (2nd LD) Seoul shares crash over 10 pct on heavy tech selloff amid AI skepticism Yonhap News Agency —
- World shares are mixed, while South Korea’s Kospi sinks nearly 11% on heavy selling of chipmakers The Philadelphia Inquirer —
- Chip stocks are in freefall from Seoul to Wall Street. Amazon, Meta, and Microsoft report this week Quartz —