Seoul:Stocks in Seoul opened significantly lower on Thursday as investor sentiment was dampened by ongoing concerns over the sustainability of artificial intelligence (AI) and unexpectedly high inflation in the United States. The Korea Composite Stock Price Index (KOSPI) fell sharply by 348.47 points, or 5.8 percent, to 5,660.34 shortly after the market opened at 915 a.m.
According to Yonhap News Agency, the steep decline led the country's bourse operator to issue a sell-side sidecar soon after trading began. This marked the sixth consecutive session of losses for Seoul stocks.
Major U.S. stock indexes also experienced declines overnight, with the S&P 500 down by 1.11 percent and the tech-heavy Nasdaq falling 1.88 percent. The U.S. Consumer Price Index rose 0.6 percent in September from the previous month, resulting in an annual inflation rate of 3.7 percent, which surpassed economists' expectations of a 3.6 percent increase. Additionally, skepticism persists regarding whether investments in AI will yield the anticipated returns.
Seoul's leading tech firms mirrored the decline seen in U.S. tech stocks. Samsung Electronics and SK hynix saw their shares drop by more than 6 percent and 8 percent, respectively. Other major companies also recorded losses, with Hyundai Motor down 4.31 percent, Hanwha Aerospace decreasing by 0.24 percent, and Celltrion retreating 1.39 percent.
The Korean won was trading at 1,343.3 won against the U.S. dollar at 915 a.m., down 1 won from the closing rate of the previous trading session.