Seoul stocks open sharply lower on lingering concerns over AI, US inflation

Seoul stocks opened sharply lower Thursday, as concerns over the sustainability of artificial intelligence (AI) and hotter-than-expected inflation in the United States dampened investor sentiment.

After opening sharply lower, the benchmark Korea Composite Stock Price Index (KOSPI) tumbled 348.47 points, or 5.8 percent, to 5,660.34 as of 9:15 a.m.

The sharp drop in the index triggered the country’s bourse operator to issue a sell-side sidecar soon after the market opened.

Seoul stocks have continued their losing streak for the past six consecutive sessions.

Major stock indexes on Wall Street closed lower overnight amid growing inflation concerns and skepticism over whether the AI boom could live up to investors’ expectations.

The S&P 500 shed 1.11 percent, and the tech heavy Nasdaq dipped 1.88 percent.

The U.S. Consumer Price Index rose 0.6 percent in September from a month earlier, bringing the annual rate of inflation to 3.7 percent, above economics’ expectations for a 3.6 percent increase.

Also, investors still remained skeptical about whether AI investment could generate expected returns.

Seoul’s two chip giants moved in tandem with tech firms on Wall Street, with Samsung Electronics and SK hynix dipping over 6 percent and 8 percent, respectively.

Carmaker Hyundai Motor shed 4.31 percent, defense giant Hanwha Aerospace inched down 0.24 percent, and bio firm Celltrion retreated 1.39 percent.

The Korean won was trading at 1,343.3 won against the U.S. dollar as of 9:15 a.m., down 1 won from the close of the previous stock trading session.