Seoul: Seoul stocks opened sharply lower Thursday as a sell-off of U.S. semiconductor shares weighed on market sentiment, while investors assessed fresh remarks from Federal Reserve Chairman Kevin Warsh. The benchmark Korea Composite Stocks Price Index (KOSPI) lost 370.31 points, or 4.46 percent, at 7,933.1.

According to Yonhap News Agency, U.S. stocks retreated overnight. The S and P 500 slipped 0.2 percent, while the tech-heavy Nasdaq 100 fell 1.5 percent. The Philadelphia Semiconductor Index, a key gauge of chip stocks, tumbled 6.3 percent, causing concern among investors in Seoul.

Fed Chair Warsh's recent comments indicated that inflation expectations and inflation risks have eased in recent weeks, which dampened hopes for a July interest rate cut. This added to the cautious sentiment among investors who are closely watching central bank policies for any signs of shifts that could impact global markets.

In addition to the concerns over the Federal Reserve's stance, investors also remained cautious over the latest developments in U.S.-Iran talks. The two sides concluded another round of indirect negotiations on Wednesday without any clear signs of progress toward lasting peace, which has added to the uncertainty in the financial markets.