Seoul shares sharply down late Tue. morning on tech sell-off

SEOUL, Oct. 13 (Yonhap) -- Early Tuesday, Seoul shares tumbled as concerns about increased competition from China and artificial intelligence valuations weighed on the market ahead of major corporate earnings and U.S. inflation data. Following an opening decline of 3.1 percent, the KOSPI index dropped 386.25 points, or 6.05 percent, to 5,997.99 by 11:20 a.m. Foreign investors sold a net 2.3 trillion won worth of stocks, while domestic entities and individuals bought a net 808.9 billion won and 1.27 trillion won, respectively.

U.S. stocks finished mixed overnight, with the Dow Jones Industrial Average up 0.38 percent and the tech-focused Nasdaq Composite down 0.44 percent. Investors are eagerly anticipating the U.S. consumer price index report slated for Wednesday, which may provide additional insight into the Federal Reserve's policy stance before its October rate-setting decision.

Major corporations like Samsung Electronics, SK hynix, Hanwha Aerospace, and Hyundai Motor experienced sharp declines, with the electronics giant falling 7.29 percent and its chip rival SK hynix dropping 8.35 percent. Meanwhile, defense company Hanwha Aerospace and automotive manufacturer Hyundai Motor each experienced a 5.34 percent and 5.78 percent decrease, respectively.

Conversely, Hybe, the agency behind popular K-pop group BTS, saw a 2.6 percent increase, and shipping firm HMM climbed 0.23 percent. At 11:20 a.m., the Korean won traded at 1,339.45 won against the U.S. dollar, marking a 3.65 won decrease from the prior trading session's close.