South Korean Stocks Fall on AI Spending Concerns
The benchmark KOSPI fell 2.59% to around 5,706 on Tuesday, retreating from gains in the previous session as concerns over heavy spending on artificial intelligence infrastructure weighed on technology stocks ahead of the US midterm elections. The decline followed overnight losses on Wall Street, where the Nasdaq Composite and S&P 500 fell 1.07% and 0.51%, respectively, amid continued weakness in AI-related shares. Additional downward pressure came from index heavyweights, including Samsung Electronics (-4.59%), SK Hynix (-5.57%), LG Energy Solution (-2.60%), and Hyundai Motor (-4.18%). Meanwhile, market participants assessed South Korea’s inflation, which remained elevated at 2.8% in October, easing only slightly from 2.9% in September and reinforcing expectations of a possible interest rate hike at the Bank of Korea’s November policy meeting.
The benchmark KOSPI fell 2.59% to around 5,706 on Tuesday, retreating from gains in the previous session as concerns over heavy spending on artificial intelligence infrastructure weighed on technology stocks ahead of the US midterm elections. The decline followed overnight losses on Wall Street, where the Nasdaq Composite and S&P 500 fell 1.07% and 0.51%, respectively, amid continued weakness in AI-related shares. Additional downward pressure came from index heavyweights, including Samsung Electronics (-4.59%), SK Hynix (-5.57%), LG Energy Solution (-2.60%), and Hyundai Motor (-4.18%).
Meanwhile, market participants assessed South Korea’s inflation, which remained elevated at 2.8% in October, easing only slightly from 2.9% in September and reinforcing expectations of a possible interest rate hike at the Bank of Korea’s November policy meeting.