South Korea’s KOSPI falls more than 6% to its lowest level since late July
Updated
Summary
South Korea’s benchmark KOSPI plunged more than 6% to around 5,990 on Tuesday, its lowest level since late July. The report attributed heavy selling in semiconductor stocks to mounting concerns about AI valuations and Chinese competition.
Why it matters
Samsung Electronics fell more than 6% and SK hynix more than 8%, after reports of technological progress by Chinese rival CXMT and renewed doubts about the sustainability of AI spending. Sustained foreign outflows also added to the KOSPI’s losses, according to the report.
Separately, Brent crude climbed above $106 per barrel amid escalating Middle East tensions, raising concerns about imported inflation and the interest-rate outlook.
What remains uncertain
Investors were awaiting September US CPI data for further clues on the Federal Reserve’s policy outlook.