Seoul shares extend losses late Thursday morning on tech slump
The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Thursday. Yonhap
Korean stocks fell sharply late Thursday morning as investors dumped large-cap tech shares following a rise in the previous sessions.
After opening 1.81 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, falling 298.38 points, or 4.52 percent, to 6,299.88 as of 11:20 a.m.
The index had risen 1.62 percent and 3.76 percent on Tuesday and Wednesday, respectively, driven by eased concerns over artificial intelligence (AI) profitability.
As the index suffered a sharp loss, the Korea Exchange (KRX) activated a sell-side sidecar for the KOSPI for five minutes at 10:18 a.m., halting program trading for KOSPI-listed shares.
Overnight on Wall Street, the tech-heavy Nasdaq Composite lost 0.83 percent, its first decline in five sessions, as tech heavyweights, including Alphabet and Advanced Micro Devices, lost ground.
The Dow Jones Industrial Average extended its winning streak amid news reports that Iran and Oman have agreed on a route for ships transiting the Strait of Hormuz.
In Seoul, tech shares led the decline.
Market bellwether Samsung Electronics sank 5.89 percent, and its chipmaking rival SK hynix slumped 8.75 percent.
Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, plunged 9.11 percent, and SK Square, the parent of SK hynix, dived 11.62 percent.
Top carmaker Hyundai Motor dropped 2.35 percent, and leading energy firm Doosan Enerbility lost 1.69 percent.
However, defense giant Hanwha Aerospace rose 4.17 percent, and cosmetics maker APR jumped 4.34 percent on its solid second-quarter earnings.
The Korean won was trading at 1,416.25 won against the U.S. dollar as of 11:20 a.m., up 8.65 won from the close of stock trading the day before.