Seoul shares turn lower amid Nvidia controversies despite Wall Street rally

Korean shares slipped on Thursday despite a Wall Street rally fueled by a tech surge, as controversies surrounding Nvidia CEO Jensen Huang overshadowed the market. The Korea Composite Stock Price Index (KOSPI) initially opened 0.2 percent higher but soon turned negative, slipping 11.32 points, or 0.21 percent, to 5,364.04 by 9:15 a.m.

On Wall Street, three major stock indexes made gains overnight. The Dow Jones Industrial Average climbed 0.49 percent, the S&P 500 increased 1.31 percent, and the Nasdaq Composite rose 1.6 percent. Positive earnings reports from neocloud firm CoreWeave helped alleviate investor concerns over the profitability of significant AI investments.

However, Nvidia's stock suffered a sharp decline after the market closed as reports emerged that its board was planning to remove Huang from his position. The Wall Street Journal revealed that the company's board intended to oust the CEO, while a New York Times report alleged that Huang had an extramarital affair with a company executive who reported to him. Additionally, the CEO admitted to having a relationship with a suspected Chinese spy.

In Seoul, semiconductor shares were relatively mixed. Samsung Electronics experienced a modest gain of 0.73 percent, while another major chipmaker saw less significant movement.