Seoul shares down on tech slump, US-Iran conflict
Seoul, June 11
South Korean stocks were trading lower on Thursday morning amid continuing volatility surrounding major technology shares and concerns over escalating tensions between the United States and Iran.
After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) had fallen 124.91 points, or 1.62 percent, to 7,605.91 as of 11:20 a.m. The index had started nearly 3 percent lower, reports Yonhap news agency.
Overnight, the Dow Jones Industrial Average closed 1.87 percent lower, the S&P 500 fell 1.62 percent, and the tech-heavy Nasdaq composite shed 1.98 percent, as investors unloaded tech shares as woes brewed over the high valuation of artificial intelligence (AI) stocks.
AI chip giant Nvidia dipped 3.73 percent, Broadcom slid 5.12 percent, Super Micro Computer tumbled 28 percent, and AMD dropped 4.86 percent.
Market sentiment was also weighed down by news that the U.S. launched additional strikes against Iran, and the latter threatened to fire on any vessel attempting to pass through the Strait of Hormuz, which brewed concerns the two countries may reenter a full-scale war.
The U.S. Consumer Price Index for May, key inflation data that drew investors' attention, was softer than expected, but was not enough to soothe concerns over a possible hawkish policy pivot by the U.S. Federal Reserve, said Seo Sang-young, an analyst at Mirae Asset Securities.
In Seoul, market top-cap Samsung Electronics lost 1.49 percent, while its chipmaking rival SK hynix gained 0.63 percent.
Samsung Electro-Mechanics dipped 3.38 percent, and SK Group backtracked 2.76 percent.
Top automaker Hyundai Motor slipped 4.32 percent, and its sister Kia contracted 5.51 percent. Auto parts manufacturer Hyundai Mobis also dropped 4.04 percent.
Leading battery maker LG Energy Solution lost 1.69 percent, and its smaller rival Samsung SDI went down 3.42 percent.
Power plant manufacturer Doosan Enerbility decreased 5.38 percent, and defence giant Hanwha Aerospace plunged 5.43 percent.
The Korean won was trading at 1,528 won against the U.S. dollar at 11:20 a.m., down 3.8 won from the previous session.
— IANS
Reader Comments
Interesting that SK hynix is actually up while Samsung Electronics is down. Shows how these tech giants are reacting differently. But honestly, global markets feel like a roller coaster lately. Our reliance on Korean semiconductors for manufacturing keeps this relevant.
The won depreciating past 1528 is worrying. Makes electronics imports costlier, especially phones and laptops. Dabba bhar ke kharcha badh gaya hai. 📉💸
The AI stock correction was overdue. Nvidia and Broadcom were flying too high. But the US-Iran thing is pure geopolitics messing with global stability. Why can't these superpowers sort out their differences without affecting small investors everywhere? 🤷♂️
This ripple effect from US tech stocks to Seoul and then to global supply chains shows how interconnected everything is. India's IT sector might also feel this if the trend continues. It's a domino effect.
Defence stocks like Hanwha Aerospace dropping 5.43% is ironic when there's actual conflict brewing. Shows market confusion. And the CPI data being "softer than expected" but still not soothing Fed worries - investors are never satisfied, are they? 😅
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