Seoul Stocks Slide at Open as AI Worries and Oil Prices Hit Sentiment
South Korean shares opened sharply lower as weakness in US technology stocks and rising oil prices weighed on investor sentiment, with major chip, battery and electronics names retreating.
South Korean shares opened sharply lower on Friday as renewed concern over artificial intelligence investment and rising oil prices weighed on market sentiment.
The benchmark Korea Composite Stock Price Index fell 130.6 points, or 2.36 percent, to 5,403.17 at the opening bell. The decline followed a weak session for major US technology stocks and reflected broad pressure on large-cap Korean companies.
Overnight trading on Wall Street produced mixed results, but losses were concentrated in the technology sector. The Dow Jones Industrial Average edged up 0.02 percent, while the S&P 500 dropped 1.21 percent and the technology-heavy Nasdaq Composite fell 2.6 percent.
Semiconductor shares were among the most prominent decliners in the United States. Micron Technology lost 6.26 percent, Nvidia fell 4.4 percent and Intel dropped 8.04 percent. Their retreat added to concerns that enthusiasm surrounding AI-related investment may be cooling, a particularly important signal for South Korea because chipmakers carry substantial weight in its stock market and export economy.
The risk-off mood quickly spread to Seoul. By 9:15 a.m., the KOSPI was down 156.6 points, or 2.83 percent, at 5,377.17. Samsung Electronics declined 3.26 percent, while rival memory-chip producer SK hynix lost 2.21 percent. LG Energy Solution fell 2.56 percent, and Samsung Electro-Mechanics dropped 6.64 percent.
Energy prices added another source of uncertainty. Oil climbed amid concerns about possible supply disruptions after Yemen's Iran-aligned Houthi rebels said they had again attacked key facilities in Saudi Arabia. Higher oil prices can increase costs for an economy heavily dependent on imported energy and can complicate the inflation outlook.
The Korean won was trading at 1,325.8 won against the US dollar at 9:15 a.m., 0.7 won higher than at the previous stock-market close.
The opening moves showed Korean investors responding simultaneously to weaker global technology sentiment and geopolitical risks affecting energy markets. Trading later in the session will indicate whether early losses deepen or bargain buying helps stabilize the benchmark after the initial selloff.