Seoul shares open lower on Democratic Party victory in US midterm elections
A screen at the dealing room of Hana Bank’s headquarters in central Seoul shows the KOSPI indices, Thursday. Yonhap
Korean stocks started lower Thursday as the U.S. midterm elections ended with a Democratic Party victory, raising concerns over tighter artificial intelligence (AI) regulations.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 112.81 points, or 1.98 percent, to 5,570.99 as of 9:15 a.m.
U.S. stocks finished higher as the Dow Jones Industrial Average rose 3 percent, and the S&P 500 gained 1.6 percent. The tech-heavy Nasdaq Composite added 1.4 percent.
However, the PHLX chip index fell 3.1 percent to hit a six-month low as investors were concerned about stricter regulations on AI data centers by the new Democrats-led Congress.
In Seoul, semiconductor shares contributed to the bearish opening.
Tech giant Samsung Electronics dropped 3.56 percent, and chipmaker SK hynix tumbled 5.8 percent.
Hanmi Semiconductor, a leading chip equipment maker, slumped 6.39 percent, and SK Square, the parent of SK hynix, sank 5.12 percent.
Leading oil refiner SK Innovation fell 4.2 percent, and S-Oil declined 2.34 percent.
The Korean won was trading at 1,340.25 won against the U.S. dollar as of 9:15 a.m., up 1.25 won from the close of the previous stock trading session.