Seoul: South Korean stocks extended losses late Tuesday morning as big chip shares sharply lost ground, tracking an overnight slump in U.S. techs. After opening 1.2 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) shed 332.8 points, or 4.43 percent, to 7183.24 as of 11:20 a.m.
According to Yonhap News Agency, U.S. stocks closed mixed overnight as investors remained cautious following U.S. President Donald Trump's announcement of postponing a planned attack on Iran at the request of Gulf leaders. The surge in crude oil prices added to market anxiety and fueled concerns over long-term inflation. Some U.S. big techs, such as Apple and Microsoft, ended lower, and investors are awaiting the earnings report from artificial intelligence chip giant Nvidia this week.
In Seoul, blue-chip tech shares experienced a downturn. Semiconductor heavyweights Samsung Electronics and SK hynix decreased by 4.27 percent and 4.73 percent, respectively. AI investment firm SK Square saw a reduction of 6.95 percent, while leading battery maker LG Energy Solution fell by 4.23 percent. Automobile shares also faced declines, with top automaker Hyundai Motor dropping 9.35 percent and its smaller affiliate Kia declining 5.6 percent. In contrast, defense giant Hanwha Aerospace surged by 4.48 percent.
The Korean won was trading at 1,502.7 won against the U.S. dollar at 11:20 a.m., down 2.4 won from the previous session.