Seoul stocks open sharply lower on tech selloff

Seoul stocks plunged dramatically on Tuesday, reacting to a decline in U.S. technology shares the previous evening. Investors remained wary, especially as the much-anticipated earnings report from Nvidia, a major U.S. chip manufacturer, awaited. The Korea Composite Stock Price Index (KOSPI) fell 244.84 points, or 3.66 percent, to 6,452.12 just nine minutes after the opening bell.

A similar pattern played out the day before, with the KOSPI dropping over 3 percent after chipmakers, including Samsung Electronics, saw their shares take a significant hit due to doubts about the profitability of AI-related investments.

U.S. markets had a mixed performance overnight, with the Dow Jones Industrial Average gaining 0.26 percent, while the tech-heavy Nasdaq Composite dropped 0.76 percent. In addition to market jitters, geopolitical tensions in the Middle East and the upcoming release of key U.S. economic data and corporate earnings this week are also weighing on investors' minds.

Federal Reserve Governor Kevin Warsh is scheduled to address the annual Jackson Hole gathering in Wyoming on Friday, U.S. time. His remarks are expected to offer insights into the Federal Reserve's future monetary policy, which could further influence market sentiment.