Seoul stocks open sharply lower on AI fears after US midterms
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Financial data is shown on a screen inside the dealing room of Hana Bank in central Seoul, Friday. Yonhap
Seoul stocks opened sharply lower Friday, tracking an overnight rout on Wall Street as investors feared a Democratic sweep in Congress could decelerate the data center build-out.
The benchmark Korea Composite Stock Price Index (KOSPI) opened down 120.54 points, or 2.24 percent, at 5,263.26.
Major U.S. stock indexes tumbled overnight as the midterm election results weighed heavily on U.S. stocks amid fears over sectors related to artificial intelligence (AI).
The S&P 500 fell 4.36 percent, while the tech-heavy Nasdaq plummeted 5.52 percent.
The Democrats’ sweeping victory could slow down investments in data centers and the rollout of such facilities, which have faced widespread opposition from the public.
Adding further concerns is a rise in oil prices after Iranian forces said at least five tankers have been damaged in the Strait of Hormuz.
