Seoul shares trim losses late Tuesday morning on retail buying
The benchmark KOSPI and the won-dollar exchange rate are displayed at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap
Seoul shares trimmed earlier losses late Tuesday morning on retail buying as investors awaited major corporate earnings results, including those from U.S. chip giant Nvidia, due this week.
After opening 2.4 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) pared losses, trading 117.57 points, or 1.76 percent, lower at 6,579.39 as of 11:20 a.m.
Retail investors and institutions bought a net 1 trillion won ($723 million) and 503 billion won, respectively, while foreigners sold a net 2.11 trillion won.
The index fell more than 3 percent the previous session on a sharp decline in chipmakers, such as Samsung Electronics, amid renewed concerns over the profitability of artificial intelligence (AI)-related investments.
Overnight, U.S. stocks closed mixed, with the Dow Jones Industrial Average rising 0.26 percent, while the tech-heavy Nasdaq Composite fell 0.76 percent.
Investors are also weighing escalating geopolitical tensions in the Middle East while awaiting U.S. economic data and corporate earnings due this week, analysts said.
Federal Reserve Gov. Kevin Warsh is expected to speak at the annual Jackson Hole gathering in Wyoming on Friday (U.S. time), which will provide clues to the Fed's monetary policy outlook amid persistent inflation.
In Seoul, technology stocks led the decline.
Samsung Electronics fell 2.53 percent, while its chipmaking rival SK hynix declined 4.55 percent.
Leading battery maker LG Energy Solution dropped 3.04 percent and leading refiner SK Innovation shed 1.84 percent.
Among gainers, top automaker Hyundai Motor rose 0.24 percent, and defense giant Hanwha Aerospace shed 0.36 percent.
The Korean won was trading at 1,382.65 won against the U.S. dollar, as of 11:20 a.m., up 0.55 won from the close of the previous stock trading session.