(LEAD) Seoul shares start higher despite Wall Street losses, AI concerns

South Korean stocks began the trading day on an upward trajectory on Wednesday, defying early declines on Wall Street, despite lingering apprehensions surrounding artificial intelligence spending. The Korea Composite Stock Price Index (KOSPI), a key market benchmark, climbed 1.83 percent to reach 6,146.01 points by 9:15 a.m., marking a 110.66 point increase from its previous value.

However, the previous day had seen the KOSPI tumble by 5.46 percent, primarily due to losses in the technology sector, exacerbated by the persistent worries over AI firms' excessive capital expenditure. U.S. stock markets, on the other hand, closed lower on the same day, with the Dow Jones Industrial Average slipping 0.35 percent and the Nasdaq dropping 0.15 percent.

The semiconductor sector witnessed a slight downturn, with the PHLX chip index falling by 0.23 percent and marking its fifth consecutive decline. Broadcom CEO Hock Tan expressed his reservations, comparing the current level of AI-related investments to a casino. Nevertheless, several prominent companies in the market showcased resilience and growth.

Samsung Electronics, a market bellwether, surged by 3.02 percent, while its chip manufacturing rival, SK hynix, also experienced an uptick of 2.36 percent. Internet giant Naver recorded a 1.18 percent increase, and leading mobile carrier SK Telecom achieved a 4.5 percent rise. Kia, the second-largest automobile manufacturer in the country, gained 1.39 percent, and its auto parts subsidiary, Hyundai Mobis, climbed 2.87 percent.

The Korean won traded at 1,338.50 won against the U.S. dollar, marking a 3.2 won increase from the prior trading session's close.