(URGENT) Seoul stocks open lower after U.S. tech sell-off

SEOUL, Oct. 19 (Yonhap) -- Monday began with a sharp decline in Seoul stocks, following a technology-driven sell-off on Wall Street, as worries grew about whether the substantial investments in artificial intelligence (AI) infrastructure would yield enough returns. The benchmark Korea Composite Stock Price Index (KOSPI) initially fell 3.17 percent, before eventually narrowing the losses and closing at 5,572.10 points, a 1.69 percent decrease, at 9:15 a.m. On Friday, the KOSPI had climbed by 2.05 percent, ending the week with a 6.3 percent loss.

The Dow Jones Industrial Average in the U.S. saw a 0.34 percent drop, while the tech-heavy Nasdaq Composite fell by 2.14 percent. Investors are maintaining a cautious outlook due to upcoming earnings reports from major corporations such as Tesla and Meta Platforms, along with the upcoming U.S. midterm elections on November 3, which have caused ongoing uncertainty regarding the interest rate environment, according to analysts.

Major market leaders like Samsung Electronics and SK hynix, both chip manufacturers, experienced a decline of 1.28 percent and 2.83 percent respectively. Hyundai Motor and shipbuilder HD Hyundai Heavy Industries saw a minor setback of 1.12 percent and 3.7 percent respectively. However, some stocks managed to rise, with Korean Air among the gainers, up by 1.14 percent, and POSCO Holdings, a leading steelmaker, increased by 0.51 percent.

The Korean won was valued at 1,334.15 won against the U.S. dollar at 9:15 a.m., reflecting a 2.35 increase from the previous trading session.