Seoul stocks extend losses as AI, US inflation concerns persist

Seoul stocks were trading sharply lower late Thursday morning as concerns over artificial intelligence (AI) trade and U.S. inflation data sparked a sell-off of major tech shares.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 404.21 points, or 6.73 percent, to 5,604.6 as of 11:20 a.m.

In early trading, the benchmark index had fallen over 5 percent, triggering the country’s bourse operator to temporary suspend trading for five minutes.

Overnight, U.S. stocks closed lower as concerns over the sustainability of AI spending and September consumer price data dampened investor sentiment.

The U.S. Consumer Price Index (CPI) for September rose 0.6 percent from a month earlier, the fastest level seen since April, according to official data released Wednesday (U.S. time).

In Seoul, most market top caps were trading lower.

Chip titans Samsung Electronics and SK hynix tumbled 7.87 percent and 9.87 percent, respectively.

Industry leader Hyundai Motor fell 5.1 percent, financial firm KB Financial slid 1.13 percent and defense giant Hanwha Aerospace dipped 1.54 percent.

Among the few winners was bio firm Celltrion, which added 3.13 percent.

The Korean won was trading at 1,350 won against the U.S. dollar as of 11:20 a.m., down 7.7 won from the close of the previous stock trading session.