SEOUL, May 13 (Yonhap) – South Korean stocks opened sharply lower on Wednesday, mirroring overnight losses on Wall Street. This downturn was attributed to a decline in blue-chip tech shares, a faster-than-expected rise in U.S. inflation, and ongoing uncertainties surrounding peace talks between the United States and Iran.
The benchmark Korea Composite Stock Price Index (KOSPI) commenced trading 1.69 percent down, subsequently falling 196.25 points, or 2.57 percent, to 7,446.9 within the first 15 minutes of the session.
The KOSPI had ended its five-day winning streak on Tuesday, having reached an intraday high of 7,999.67, as investors engaged in profit-taking following a record-breaking rally driven by large-cap tech shares such as Samsung Electronics and SK hynix.
Overnight tech losses on Wall Street further eroded investor risk appetite, reigniting concerns about the sustainability of extensive investments in the artificial intelligence (AI) sector.
The tech-heavy Nasdaq composite closed down 0.71 percent, and the S&P 500 declined 0.16 percent, though the Dow Jones Industrial Average managed a 0.11 percent gain.
Among individual stocks, Intel plunged 6.82 percent, AMD fell 2.29 percent, Micron dipped 3.61 percent, and SanDisk slid 6.17 percent.
Investors also remained apprehensive about the rise in U.S. inflation in April, largely attributed to escalating oil prices fueled by the U.S.-Israeli conflict against Iran.
Market attention is also focused on the potential for a general strike by unionized workers at Samsung Electronics, following the failure of government-led mediation talks overnight to resolve differences between the company’s labor union and management regarding performance-based bonuses.
In response to these developments, market leader Samsung Electronics slid 5.29 percent, while its chipmaking competitor SK hynix fell 2.18 percent. AI investment firm SK Square also saw a decline of 2.75 percent.
Leading battery manufacturer LG Energy Solution contracted 2.26 percent, and its smaller rival Samsung SDI pulled back 3.34 percent. Power plant manufacturer Doosan Enerbility dropped 4.94 percent, and trading firm Samsung C&T plummeted 7.36 percent.
Electrical and automotive shares presented a mixed performance. Samsung Electro-Mechanics gained 1.77 percent, but HD Hyundai Electric and LS Electric shed 4.89 percent and 5.02 percent, respectively. Auto giant Hyundai Motor rose 1.08 percent, and its auto parts-making affiliate Hyundai Mobis jumped 4.56 percent, though Kia lost 1.49 percent.
The Korean won was trading at 1,494 won against the U.S. dollar at 9:15 a.m., marking a depreciation of 4.1 won from the previous session.
#SeoulShares #KOSPI #StockMarket #SouthKorea #WallStreet #TechStocks #Inflation #MiddleEastTensions #SamsungElectronics #EconomicDownturn
