(URGENT) Seoul shares fall for 6th day on renewed AI concerns ahead of U.S. inflation data

South Korean stocks continued their downward trend on Wednesday, with a sixth consecutive day of falls, amid ongoing worries about heavy spending on artificial intelligence (AI). The Korean won strengthened against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 26.54 points, or 0.44%, to 6,008.81.

The KOSPI had already been declining since the previous Tuesday, with a 5.46% plunge on the prior day. The index briefly rose 2.57% around 9:34 a.m. following positive comments from New York Fed President John Williams regarding future monetary tightening. However, this gain was quickly reversed due to ASML's disappointment in its sales outlook.

ASML, a Dutch tech giant that provides chip manufacturing machines to major firms like Samsung Electronics, reported strong earnings for Q3 but fell short of market expectations for its 2026 sales forecast. ASML's stock price surged 84% in 2026, but its revised outlook failed to impress investors. After the earnings report, the KOSPI lost all its earlier gains.

Seo Sang-young, a senior analyst at Mirae Asset Securities, noted that investors are now eagerly anticipating the release of US consumer prices data later in the day. Trade volume remained moderate, with 350.8 million shares traded, amounting to 19.9 trillion won ($14.9 billion). Gainers outnumbered decliners by 502 to 369. Foreign investors and individuals sold a combined 1.18 trillion won ($14.9 billion) worth of shares, while institutions netted a gain of 808.3 billion won.

Semiconductor shares, including SK hynix and Hanmi Semiconductor, experienced losses, while Samsung Electronics remained flat. Bank shares were also pressured, with Hana Financial Group and KB Financial Group each declining by 2.25% and 1.97%, respectively. Major retailers like Lotte Shopping and Samyang Foods also fell, while battery maker LG Energy Solution and oil refinery SK Innovation showed gains.

Leading production studio CJ ENM and cosmetics manufacturer APR also saw increases. As of 3:30 p.m., the Korean won was quoted at 1,338.3 won against the US dollar, up 6.8 won from the previous trading session's close. Bond prices, which move inversely to yields, closed lower, with the yield on three-year Treasurys increasing 2.6 basis points to 3.883% and the return on benchmark five-year government bonds rising 1.7 basis points to 4.047%.