Seoul: Seoul shares opened sharply lower Tuesday, driven by a significant selloff in technology stocks following overnight losses in U.S. technology shares. Investors remained cautious ahead of pivotal events, notably the anticipated earnings release from U.S. chip giant Nvidia. The benchmark Korea Composite Stock Price Index (KOSPI) opened 2.4 percent lower and continued its downward trajectory, trading at 6,452.12 points, down 244.84 points or 3.66 percent, by 9:15 a.m.

According to Yonhap News Agency, the index had already experienced a decline of more than 3 percent in the previous session, primarily due to a sharp fall in chipmaker stocks like Samsung Electronics. This drop stemmed from renewed concerns over the profitability of investments related to artificial intelligence (AI). Meanwhile, U.S. markets closed mixed overnight. The Dow Jones Industrial Average rose by 0.26 percent, contrasting with a 0.76 percent decline in the tech-heavy Nasdaq Composite.

Investors are also grappling with rising geopolitical tensions in the Middle East while they await U.S. economic data and corporate earnings scheduled for release this week. Additionally, Federal Reserve Governor Kevin Warsh's upcoming speech at the annual Jackson Hole gathering in Wyoming on Friday is expected to offer insights into the Fed's monetary policy stance amid ongoing inflation concerns.

Technology stocks were at the forefront of the decline. Samsung Electronics saw a significant drop of 4.28 percent, with its competitor SK hynix experiencing an even larger decline of 6.46 percent. Other major companies were affected as well, with Hyundai Motor falling 1.57 percent and defense giant Hanwha Aerospace shedding 0.72 percent.

Amidst the downturn, some stocks managed to post gains. Samyang Foods edged up 0.2 percent, while Korea Zinc rose by 2.31 percent. In currency markets, the Korean won was quoted at 1,380.00 against the U.S. dollar, an increase of 3.2 won from the previous session's close.