(URGENT) Seoul stocks slid over 3.5 pct on AI jitters, unrest in France

South Korean stocks plummeted nearly 4% on Tuesday, as fears surrounding investments in the artificial intelligence (AI) sector triggered a sharp sell-off among leading chip manufacturers. The Korean won strengthened against the U.S. dollar. The Korea Composite Stock Price Index (KOSPI), which serves as the benchmark for South Korean equities, dropped 215.27 points, or 3.73%, to 5,552.74, after tumbling as low as 5,493.24.

The index commenced the day 0.6% lower, and the decline intensified due to mounting concerns over AI-related sectors and mounting protests in France, which dampened appetite for high-risk assets. The KOSPI had surged for two days in a row following a significant drop prompted by uncertainties surrounding AI-related investments, plummeting around 21% over the preceding seven trading sessions from October 6 through Thursday.

U.S. stocks closed mixed overnight, with technology shares recovering from their steepest weekly decline since June. Samsung Electronics saw a decline of 2.98%, closing at 211,500 won, while chip producer SK hynix slipped 4.23% to 1.22 million won, marking its lowest close since April. As of 3:30 p.m., the Korean won was valued at 1,328.1 won against the U.S. dollar, a 2.2-won increase from the previous trading session's closing rate.