South Korean shares plunge over 5 per cent as AI spending doubts rattle markets
South Korea's KOSPI fell more than 5 per cent on 30 October, driven by tech stock losses linked to global doubts over artificial intelligence investment. The index is on track for an 18 per cent monthly decline, its steepest in months, as chipmakers lead the sell-off.
South Korean shares fell more than 5 per cent on Friday, putting the benchmark KOSPI on course for a sharp monthly loss, as chipmakers tracked an overnight slump in US tech stocks fuelled by doubts over the global artificial intelligence investment boom, Reuters reported.
The KOSPI was down 314.58 points, or 5.3 per cent, at 5,623.08 as of 0217 GMT, according to the report. During the session, the decline triggered a sidecar trading curb, halting algorithmic trading for five minutes. The index has fallen 18 per cent so far this month, after two consecutive months of gains.
US stocks slid on Thursday as investors reassessed big tech's massive AI spending spree, digesting high-profile earnings and crucial inflation data a day after the Federal Reserve held US interest rates steady, the report said.
Chipmaker Samsung Electronics fell 5.93 per cent, while peer SK Hynix lost 8.58 per cent, Reuters reported. Among other index heavyweights, battery maker LG Energy Solution climbed 0.35 per cent, while Hyundai Motor and sister automaker Kia Corp were down 3.59 per cent and 3.51 per cent, respectively. Steelmaker POSCO Holdings shed 1.45 per cent, while drugmaker Samsung Biologics rose 4.10 per cent.
Of the total 908 traded issues, 138 shares advanced, while 749 declined, the report said. Foreign investors were net sellers of shares worth 844.9 billion won (US$630.94 million).
The won was quoted at 1,337.8 per dollar on the onshore settlement platform, 0.13 per cent higher than its previous close at 1,339.5, Reuters reported. In money and debt markets, December futures on three-year treasury bonds crawled 0.09 of a point higher to 103.42. The most liquid three-year Korean treasury bond yield fell by 3.4 basis points to 3.734 per cent, while the benchmark 10-year yield fell by 7 basis points to 4.030 per cent.