Seoul stocks began trading lower on Thursday as investors consider the potential impact of US-Iran discussions on the market.
The benchmark Korea Composite Stock Price Index (KOSPI) decreased by 80.19 points, a 1.42 percent drop, reaching 5,562.02.
Overnight, major US stock indexes experienced gains, driven by optimism surrounding potential progress in US-Iran ceasefire talks. The White House indicated that discussions with Tehran are moving forward.
The S&P 500 closed with a 0.54 percent increase, while the technology-focused Nasdaq rose by 0.77 percent.
However, geopolitical concerns persist. Despite reported messages from Washington, Iran’s foreign minister stated in a televised interview that no negotiations have taken place.
In Seoul, the majority of large-cap stocks are currently trading down.
Shares of Samsung Electronics, a major chip manufacturer, fell by 2.65 percent. Its competitor, SK hynix, experienced a larger decline of 3.62 percent.
Investor sentiment towards these chipmakers has weakened due to concerns that Google’s new AI compression algorithm, TurboQuant, could potentially reduce the demand for memory chips.
Leading automaker Hyundai Motor decreased by 1.3 percent, and portal operator Naver saw a slight dip of 0.23 percent. Conversely, defense company Hanwha Aerospace increased by 0.36 percent.
