Seoul:South Korean shares opened sharply lower on Friday, influenced by overnight losses in U.S. artificial intelligence (AI) and semiconductor stocks, alongside rising oil prices which heightened market anxieties. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 156.6 points, or 2.83 percent, to 5,377.17 as of 915 a.m., after an initial decline of 2.36 percent.
According to Yonhap News Agency, U.S. stocks experienced mixed outcomes overnight, with major technology shares pulling the broader market down. The Dow Jones Industrial Average showed a marginal increase of 0.02 percent, whereas the S&P 500 decreased by 1.21 percent, and the tech-heavy Nasdaq Composite fell by 2.6 percent. Notably, Micron Technology, Nvidia, and Intel saw significant losses, plunging 6.26 percent, 4.4 percent, and 8.04 percent, respectively.
The global market downturn is attributed to renewed concerns over the AI sector, compounded by rising oil prices amidst fears of potential supply disruptions following reported attacks on Saudi Arabian facilities by Yemen's Iran-aligned Houthi rebels. In Seoul, large-cap shares saw declines, with market leader Samsung Electronics dropping 3.26 percent and its competitor SK hynix decreasing by 2.21 percent. Battery maker LG Energy Solution fell by 2.56 percent, and Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, plunged 6.64 percent.
The Korean won was trading at 1,325.8 won against the U.S. dollar at 915 a.m., a slight increase of 0.7 won from the previous session's close.