Seoul shares extend losses late Thu. morning on tech losses
The benchmark KOSPI and won-dollar exchange rate are displayed at a dealing room of Hana Bank in Seoul, Thursday. Yonhap
Seoul shares extended losses late Thursday morning, led by chip stocks, as the escalating conflict in the Middle East renewed concerns over energy supplies from the region.
After opening 4.45 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses, falling 521.49 points, or 7.16 percent, to 6,762.92 as of 11:20 a.m.
The Korea Exchange, the country's bourse operator, activated a sell-side sidecar on the KOSPI for 20 minutes at around 9:10 a.m. after the benchmark index fell more than 5 percent.
On Wednesday, the index surged 6.24 percent as softer-than-expected U.S. inflation data eased concerns about near-term Federal Reserve interest rate hikes.
Overnight, the Dow Jones Industrial Average rose 0.29 percent to 52,658.64, while the tech-heavy Nasdaq Composite fell 0.62 percent to 26,269.23.
Investor concerns over artificial intelligence-related valuations resurfaced, dragging major AI-linked technology stocks on Wall Street lower.
Later on Wednesday (U.S. time), the United States launched fresh strikes on Iran, escalating tensions in the Middle East and renewing concerns over potential disruptions to regional energy supplies.
Institutional and foreign investors sold a net 1.26 trillion won (US$848 million) and 1.16 trillion won worth of shares, respectively, while retail investors bought a net 2.38 trillion won.
Technology stocks led the decline.
Market bellwether Samsung Electronics plunged 9.03 percent, while rival chipmaker SK hynix tumbled 11.19 percent.
Top automaker Hyundai Motor fell 4.49 percent, while defense company Hanwha Aerospace slipped 1.72 percent.
Among gainers, shipbuilder Hanwha Ocean rose 0.61 percent, while leading beverage firm Hitejinro gained 2.27 percent.
The Korean won was trading at 1,487.30 per U.S. dollar as of 11:20 a.m., down 0.3 won from the previous session.