South Korean shares set for biggest weekly fall since 2008 on AI worries
South Korean shares rebounded from a six-month low on Friday on dip buying but faced their biggest weekly loss in 18 years on AI worries
South Korean shares are on track for their biggest weekly decline in 18 years, driven by concerns over the sustainability of the global AI investment boom, according to market reports. The benchmark KOSPI index opened the week up 2.36% at 5,685.29 points but has since plummeted, falling 14.3% this week and heading for a third consecutive weekly decline.
The index experienced its longest run of daily losses since September 2024, with a 7-session losing streak. Analyst Han Ji-young of Kiwoom Securities noted that past instances of seven consecutive sessions of losses imply a higher technical reversal probability compared to the risk of further declines. Despite the overall downward trend, some sectors, including chipmakers Samsung Electronics and SK Hynix, as well as LG Energy Solution and Hyundai Motor, saw gains.
Foreign investors were net sellers, off-loading shares worth 307.8 billion won. The South Korean won was trading at 1,346.1 per dollar, a 0.30% decrease from the previous close. Treasury bond futures gained marginally, while the yields on three-year and 10-year Korean treasuries also saw slight increases.
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