Seoul stocks open lower on Wall Street losses, AI concerns

On Friday, South Korean stocks opened lower as they mirrored declines on Wall Street, with renewed doubts surrounding the long-term viability of the artificial intelligence (AI) boom casting a shadow over investor confidence. The key Korea Composite Stock Price Index (KOSPI) fell 177.31 points, or 2.99 percent, to reach 5,760.35 at the market's opening. The index had shed 1.24 percent in the prior session due to profit-taking in major chip manufacturers, even though Samsung Electronics reported record quarterly earnings.

Wall Street experienced a sell-off on the eve of trading, with technology shares taking the brunt of the downturn. Alphabet, the parent company of Google, saw its stock plummet more than 12 percent after reporting a 25 percent year-on-year increase in revenue to $127.58 billion for the third quarter. Despite this robust financial performance, the company's results fell short of market expectations, sparking concerns about the returns generated from hefty investments in AI technology.

The tech-heavy Nasdaq Composite Index lost 1.38 percent, while the Philadelphia Semiconductor Index fell 1.4 percent, further dampening confidence in South Korean chipmakers.