South Korean Shares Plunge to Over 2-Month Low
The benchmark KOSPI plunged more than 6% to around 5,990 on Tuesday, reaching its lowest level since late July, as mounting concerns over AI valuations and Chinese competition triggered heavy selling in semiconductor stocks. Samsung Electronics and SK hynix slipped more than 6% and 8%, respectively, after reports of technological progress by Chinese rival CXMT and renewed doubts about the sustainability of AI spending. Additionally, Brent crude prices climbed above $106 per barrel amid escalating Middle East tensions, raising concerns over imported inflation and the outlook for interest rates. Investors are awaiting September US CPI data for further clues on the Federal Reserve's policy outlook. Notable losses were also seen in SK Square (-10.1%), Samsung Electro-Mechanics (-7.3%), Hyundai Motor (-5.8%), LG Energy Solution (-2.6%), Doosan Enerbility (-2.5%), Hanwha Aerospace (-5.1%), and HD Hyundai Heavy Industries (-3.0%). Sustained foreign outflows also added to the market's losses.
The benchmark KOSPI plunged more than 6% to around 5,990 on Tuesday, reaching its lowest level since late July, as mounting concerns over AI valuations and Chinese competition triggered heavy selling in semiconductor stocks. Samsung Electronics and SK hynix slipped more than 6% and 8%, respectively, after reports of technological progress by Chinese rival CXMT and renewed doubts about the sustainability of AI spending. Additionally, Brent crude prices climbed above $106 per barrel amid escalating Middle East tensions, raising concerns over imported inflation and the outlook for interest rates.
Investors are awaiting September US CPI data for further clues on the Federal Reserve's policy outlook. 0%). Sustained foreign outflows also added to the market's losses.