South Korea's Kospi opens 3.2% lower after Friday's US tech sell-off
Seoul's benchmark index fell 179.64 points at the opening bell on Monday, following declines in US technology and chip stocks on Friday, Yonhap News Agency reported.
South Korea’s benchmark Korea Composite Stock Price Index (Kospi) opened down 179.64 points, or 3.17 per cent, at 5,488.41 on Monday, Yonhap News Agency reported at 9:05am Seoul time.
Yonhap linked the fall to a technology-focused sell-off on Wall Street on Friday, US time, “as concerns mount over whether heavy investment in artificial intelligence (AI) infrastructure can generate sufficient returns.” It reported that the Dow Jones Industrial Average fell 0.34 per cent and the Nasdaq Composite dropped 2.14 per cent on Friday.
Last week’s swings
The Kospi closed Friday at 5,668.05, up 113.83 points or 2.05 per cent, ending a seven-session losing streak, according to Yonhap and The Herald Business. The Herald Business reported that the index lost 14.5 per cent over the week from Monday to Friday, and that on Thursday both the Kospi and the Kosdaq fell more than 7 per cent, triggering circuit breakers on both markets.
Foreign investors were net buyers of about 345.6 billion won of Kospi shares on Friday, the first time in nine sessions, the Seoul Economic Daily reported, citing the Korea Exchange. The Herald Business put the figure at 343 billion won ($US254 million) by the close of regular trading.
Chip stocks in focus
The Philadelphia Semiconductor Index fell 3.83 per cent on Friday, its eighth straight daily decline and the longest losing streak since the 2008 global financial crisis, the Seoul Economic Daily reported. Chipmakers Samsung Electronics and SK hynix closed Friday up 2.62 per cent and 0.79 per cent respectively, according to The Herald Business, which reported that premarket indications on Monday pointed to declines for the largest stocks.
Analysts cited by Yonhap said investors were cautious ahead of earnings reports from companies including Tesla and Meta Platforms this week, and the US midterm elections on 3 November.
Index levels in this report are the opening figures as of 12:05am GMT; the Kospi trades until 3:30pm Seoul time.
Sources
- Seoul stocks open sharply lower after U.S. tech sell-off · Yonhap News Agency
- Kospi rebounds after 14.5% weekly plunge, but US semiconductor chill looms · The Herald Business
- KOSPI Rebound Faces Test as AI Earnings Take Center Stage · Seoul Economic Daily
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