(URGENT) Seoul stocks open lower as disappointing tech earnings trigger AI spending woes

Seoul's stock market commenced trading on Monday with a decline, primarily driven by a drop in U.S. technology shares due to apprehensions surrounding substantial investments in artificial intelligence (AI). The Korea Composite Stock Price Index (KOSPI), a key benchmark, experienced a decrease of 51 points, or 0.89 percent, reaching 5,679.74 as of 9:15 a.m. On the other side of the Atlantic, major U.S. stock indices ended the previous trading session (in U.S. time) on a downward trajectory following disappointing quarterly earnings from Intel and Amazon, which heightened apprehensions about the viability of ongoing AI expenditures.

The S&P 500 slipped by 1.82 percent, while the tech-centric Nasdaq dropped 2.86 percent. Concurrently, in the Middle East, Iranian representatives engaged in talks with Qatari mediators in Doha for a third day, aiming to resolve the ongoing conflict between the United States and Iran. The U.S. jobs report and the upcoming U.S. midterm elections, scheduled for Tuesday, continue to be key points of focus for investors.

In Seoul, most major market indices were trading in the red. Notable declines were observed among technology leaders such as Samsung Electronics, which fell 2.89 percent, and SK hynix, down 0.63 percent. LG Energy Solution, a battery manufacturer, saw a reduction of 0.76 percent, Hyundai Motor Group dipped 0.18 percent, and financial institution KB Financial Group also experienced a decline.