(URGENT) Seoul shares open sharply lower on AI woes ahead of U.S. midterm elections

South Korean stocks began the trading day on a notably downbeat note on Tuesday, as fears surrounding substantial investment in artificial intelligence (AI) infrastructure weighed heavily on the market ahead of the U.S. midterm elections. The Korea Composite Stock Price Index (KOSPI), which serves as a key benchmark, plummeted 196.71 points, marking a 3.36% decline, bringing the index to 5,662.37 points by 9:15 a.m. local time.

Concurrently, U.S. markets exhibited mixed sentiments, with investors closely monitoring the outcome of the upcoming midterm elections in the United States. The tech-heavy Nasdaq Composite and the S&P 500 both experienced declines of 1.07% and 0.51%, respectively, as stock prices in the technology sector, including AI-related shares, remained volatile. Conversely, the Dow Jones Industrial Average managed a modest 0.41% increase.

In the South Korean market, most shares opened in a downward trajectory. Industry giants, including Samsung Electronics, which remains a market bellwether, saw significant drops, declining by 4.59%. Additionally, SK hynix, a leading chip manufacturer, suffered a 5.1% reduction in value. Hyundai Motor, a prominent automaker, followed suit with a 1.57% decrease, while energy firm Doosan Enerbility experienced a 3.77% decline.

Leading shipbuilder HD Hyundai Heavy Industries and defense contractor Hanwha Aerospace also reported declines, with the former falling 2.26% and the latter dropping 0.81%. As of 9:15 a.m., the Korean won was trading at 1,342.05 per U.S. dollar, reflecting a 3.95-won increase from the previous trading session's close.