Seoul shares open lower after rebound amid AI concerns

Korean stocks commenced the trading day on a downward trajectory on Tuesday, as major technology companies experienced losses. Traders appeared eager to capitalize on recent gains, yet concerns surrounding investments in the artificial intelligence (AI) sector weighed heavily on the market. The Korea Composite Stock Price Index (KOSPI), a key benchmark, slipped 130.58 points, marking a 2.26 percent decline to 5,637.43 as of 9:15 a.m. local time.

This move reversed the two consecutive days of gains, which had occurred following a significant drop triggered by AI-related sector woes. The KOSPI had plummeted a collective 20.7 percent over the span of seven trading sessions, from October 6 to Thursday. Overnight, U.S. markets exhibited a mixed outcome, with technology shares rebounding from their most substantial weekly decline since June.

The Dow Jones Industrial Average slipped 0.07 percent, while the S&P 500 rose 0.41 percent, and the tech-heavy Nasdaq Composite Index surged 1.11 percent, closing at 26,430.89. Among Korean firms, tech heavyweights Samsung Electronics and its semiconductor rival SK hynix were prominent contributors to the market's decline. Samsung Electro-Mechanics, an electronics component manufacturer, also experienced a downturn.