Seoul shares sharply down late Tuesday morning on retail selling

Seoul shares extended losses late Tuesday morning, led by falls in semiconductors and other market heavyweights, amid investor worries over the renewed tensions in the Middle East and uncertainty over artificial intelligence (AI) sectors.

After opening 0.56 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, trading 139.03 points, or 2.04 percent, higher at 6,667.90 as of 11:20 a.m. The decline comes after the KOSPI nose-dived 9 percent in the previous session due to a massive sell-off of technology stocks.

Overnight, the Dow Jones Industrial Average fell 0.26 percent, while the tech-heavy Nasdaq composite dropped 1.55 percent.

A standoff between the United States and Iran over the Strait of Hormuz, along with a slump in SK hynix's U.S.-listed shares overnight, sapped investor sentiment.

Individuals sold a net 2.33 trillion won ($1.56 billion), while institutions and foreigners bought a net 1.93 trillion won and 427.8 billion won, respectively.

In Seoul, large-cap stocks were mixed.

Chip giant SK hynix fell 4.23 percent, and top carmaker Hyundai Motor plu