Seoul stocks open sharply lower on AI fears after US midterms
Seoul stocks opened sharply lower Friday, tracking an overnight rout on Wall Street as investors feared a Democratic sweep in Congress could decelerate the data center build-out. The benchmark Korea Composite Stock Price Index (KOSPI) opened down 120.54 points, or 2.24 percent, at 5,263.26. Major U.S. stock indexes tumbled overnight as the midterm election results weighed heavily on U.S. stocks…
Seoul's stock market experienced a significant downturn on Friday, mirroring a decline on Wall Street overnight. Investors expressed concern that a Democratic majority in Congress might slow down the expansion of data centers. The Korea Composite Stock Price Index (KOSPI), which serves as a benchmark for the South Korean market, fell by 120.54 points, or 2.24 percent, to 5,263.26 points.
The market's negative sentiment was primarily driven by the results of the US midterms, which raised apprehensions over the pace of AI-related investments. The S&P 500, a key US stock index, dropped by 4.36 percent, while the Nasdaq, known for its strong tech sector, saw a steeper decline of 5.52 percent. The Democratic triumph could potentially hinder investments in data centers, a sector that has faced public resistance.
Another factor contributing to the market's volatility was the rise in oil prices, stemming from Iranian forces' report of damaging at least five tankers in the Strait of Hormuz.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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