(LEAD) Seoul shares turn lower amid Nvidia controversies despite Wall Street rally
KOSPI falls 0.21 percent to 5,364.04 as Wall Street closes higher on tech rally
Quick Look
- South Korean shares fell Thursday despite overnight Wall Street gains, with KOSPI dropping 0.21 percent to 5,364.04 amid controversies over Nvidia CEO Jensen Huang.
- Samsung Electronics rose 0.73 percent while SK hynix fell 0.55 percent.
- The Korean won traded at 1,332.9 against the U.S. dollar.
AI-generated summary
Why It Matters
South Korean shares opened higher but turned negative amid controversies over Nvidia CEO Jensen Huang, including reports that Nvidia's board is preparing to oust him and that Huang had an extramarital affair with a company executive and admitted a relationship with a suspected Chinese spy.
SEOUL, Nov. 12 (Yonhap) -- South Korean shares turned lower Thursday despite overnight gains on Wall Street driven by a tech rally amid escalating controversies over Nvidia CEO Jensen Huang.
After opening 0.2 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) turned negative, losing 11.32 points, or 0.21 percent, to 5,364.04 as of 9:15 a.m.
Overnight on Wall Street, three major stock indexes finished higher. The Dow Jones Industrial Average rose 0.49 percent, the S&P 500 gained 1.31 percent, and the Nasdaq Composite advanced 1.6 percent.
Strong earnings reports from neocloud firm CoreWeave eased investor concerns over the profitability of massive AI investment.
However, Nvidia fell sharply after the bell as the Wall Street Journal reported that the company's board is preparing to oust Huang.
Later, a New York Times report said that Huang had an extramarital affair with a company executive who reported to him, while the Nvidia CEO admitted that he had a relationship with a suspected Chinese spy.
In Seoul, semiconductor shares were mixed.
Tech giant Samsung Electronics added 0.73 percent, while chipmaker SK hynix fell 0.55 percent, and Hanmi Semiconductor, a leading chip equipment maker, decreased 2.39 percent.
Internet giant Naver, where Nvidia is the third-largest shareholder, sank 3.4 percent, and its rival Kakao lost 0.31 percent.
Top carmaker Hyundai Motor dropped 1.1 percent, and its sister Kia declined 1.06 percent.
The Korean won was quoted at 1,332.9 won against the U.S. dollar as of 9:15 a.m., up 3.3 won from the previous trading session's close.
What to Watch
AI outlook โ possibilities, not facts
Nvidia's board may proceed with ousting CEO Jensen Huang
Possible ยท Within days
South Korean semiconductor stocks may remain volatile
Likely ยท Within days
Open Questions
- Will Nvidia's board proceed with ousting Jensen Huang?
- What impact will the controversies have on Nvidia's business and AI investments?
- How will South Korean semiconductor companies be affected long-term?
