Seoul’s stock market experienced a decline at Wednesday’s open, a movement significantly influenced by a broader investor shift away from artificial intelligence (AI) related stocks in the U.S. market.
The benchmark Korea Composite Stock Price Index (KOSPI) registered a notable drop, falling 75.79 points, or 0.87 percent, to reach 8,650.81 by 9:15 a.m. local time.
This dip in the Korean index mirrored overnight declines observed on Wall Street, which saw a significant tech sell-off. The S&P 500 notably fell by approximately 0.5 percent, while the tech-heavy Nasdaq dropped by 1.15 percent.
Adding to investor caution, chip manufacturing giant Nvidia announced plans for a $25 billion bond issuance – its first in five years – which surprised the market and contributed to a 2.4 percent dip in its share price.
Market participants also maintained a cautious stance in anticipation of the Federal Reserve’s crucial policy update, scheduled for Wednesday afternoon. Concerns arose among some investors that the new Fed chair might signal a more hawkish monetary policy stance during their inaugural meeting.
Despite the current dips, an optimistic outlook was shared by Han Ji-young, an analyst at Kiwoom Securities. Han suggested, “Given that overall market conditions are neutral or better, the market is expected to see a rotation away from semiconductor stocks into other sectors, potentially helping to narrow overall losses.”
Among leading market players, top-cap Samsung Electronics shares declined by 2.41 percent. In contrast, its primary competitor, SK Hynix, saw a modest gain of 0.76 percent.
Further reflecting diverse sectoral movements, top carmaker Hyundai Motor experienced a 3.2 percent dip. Similarly, major financial institution KB Financial saw its shares fall by 1.63 percent. However, the defense sector showed resilience, with giant Hanwha Aerospace recording an increase of 2.28 percent.
