Seoul stocks open sharply lower on tech selloff
The benchmark KOSPI and the won-dollar exchange rate are displayed at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap
Seoul shares opened sharply lower Tuesday, following overnight losses in U.S. technology shares, as investors remained cautious ahead of key events, including the upcoming earnings release from U.S. chip giant Nvidia.
After opening 2.4 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses, trading 244.84 points, or 3.66 percent, lower at 6,452.12 as of 9:15 a.m.
The index fell more than 3 percent in 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.
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.
Technology stocks led the decline.
Samsung Electronics fell 4.28 percent, while its chipmaking rival SK hynix declined 6.46 percent.
Top automaker Hyundai Motor dropped 1.57 percent, and defense giant Hanwha Aerospace shed 0.72 percent.
Among the gainers, Samyang Foods rose 0.2 percent and Korea Zinc climbed 2.31 percent.
The Korean won was quoted at 1,380.00 won against the U.S. dollar, up 3.2 won from the close of the previous stock trading session.