South Korean Shares Plunge to Near an 11-Week Low
The benchmark KOSPI plunged nearly 8% to around 5,540 on Thursday, extending its losing streak to seven sessions and falling to its lowest level since late July, as mounting concerns over AI valuations and financing costs intensified the global tech sell-off. Samsung Electronics and SK hynix tumbled nearly 9% and 11%, respectively, as investors questioned the sustainability of AI spending, tracking losses among US chipmakers. Additionally, hotter-than-expected US inflation, with annual CPI rising to 3.7% in September, fueled concerns over further Federal Reserve rate hikes, raising borrowing costs and weighing on equities. The sharp decline triggered a sell-side trading halt, while foreign investors remained net sellers. Other notable declines included SK Square (-10.1%), Samsung Electro-Mechanics (-14.6%), LG Energy Solution (-4.9%), Hyundai Motor (-6.1%), Doosan Enerbility (-7.8%), Hanwha Aerospace (-2.7%), and Kia Corporation (-3.3%).
The benchmark KOSPI plunged nearly 8% to around 5,540 on Thursday, extending its losing streak to seven sessions and falling to its lowest level since late July, as mounting concerns over AI valuations and financing costs intensified the global tech sell-off. Samsung Electronics and SK hynix tumbled nearly 9% and 11%, respectively, as investors questioned the sustainability of AI spending, tracking losses among US chipmakers. 7% in September, fueled concerns over further Federal Reserve rate hikes, raising borrowing costs and weighing on equities. The sharp decline triggered a sell-side trading halt, while foreign investors remained net sellers.
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