KOSPI sheds 21% in seven sessions as market turmoil deepens

South Korea's KOSPI fell more than 7% on Thursday, marking its seventh consecutive day of decline, as market uncertainty loomed large. The index closed at 5,554.22, a drop of 454.59 points, or 7.57%, from the previous session. This marked the largest point and percentage loss since July 28, when the index plummeted 732.09 points, or 10.84%. Since October 6, the KOSPI has lost 1,449.52 points, or 21% of its value.

The sell-off began at the opening bell as investors grappled with doubts about the profitability of artificial intelligence investments and concerns over potential US monetary tightening due to rising inflation. The market sentiment was further dampened by Gartner's pessimistic assessment of AI investments and weaker-than-expected earnings from Anthropic. The NASDAQ Composite also slid 1.88%, and semiconductor stocks suffered significant losses.

South Korea's financial authorities convened an emergency meeting to review market conditions and bolster investor protection measures. They emphasized the importance of responsible lending practices and urged financial institutions to prioritize risk management and protect customers during this volatile period.