South Korean Shares Over 1-Week Low on AI Worries
The benchmark KOSPI fell more than 4% to around 5,417 on Thursday, hitting its lowest level in more than a week as concerns over tighter artificial intelligence (AI) regulations following the Democratic Party’s victory in the US midterm elections weighed on investor sentiment. The decline came despite overnight gains on Wall Street, as the Philadelphia Semiconductor Index (SOX) dropped 3.1% to a six-month low amid concerns that a Democrat-led Congress could impose stricter regulations on AI data centers, potentially driving up power grid expansion costs and causing permitting delays. Semiconductor stocks led losses in Seoul, with Samsung Electronics (-5.16%) and SK hynix (-7.09%) among the biggest decliners. LG Energy Solution (-2.11%), Hanwha Aerospace (-5.03%), and Doosan Enerbility (-3.98%) also traded lower.
The benchmark KOSPI fell more than 4% to around 5,417 on Thursday, hitting its lowest level in more than a week as concerns over tighter artificial intelligence (AI) regulations following the Democratic Party’s victory in the US midterm elections weighed on investor sentiment. The decline came despite overnight gains on Wall Street, as the Philadelphia Semiconductor Index (SOX) dropped 3.1% to a six-month low amid concerns that a Democrat-led Congress could impose stricter regulations on AI data centers, potentially driving up power grid expansion costs and causing permitting delays.
Semiconductor stocks led losses in Seoul, with Samsung Electronics (-5.16%) and SK hynix (-7.09%) among the biggest decliners. LG Energy Solution (-2.11%), Hanwha Aerospace (-5.03%), and Doosan Enerbility (-3.98%) also traded lower.