Seoul shares open 2.7% lower tracking Wall Street losses
Quick Look
- Seoul shares opened 2.7% lower on Wednesday, mirroring overnight losses on Wall Street.
- Investors are reassessing the impact of AI trade, with a focus on whether rising capital spending and competition will justify current high valuations of tech companies.
- Major tech stocks like Samsung Electronics and SK hynix saw declines.
AI-generated summary
SEOUL, July 8 (Yonhap) -- Seoul shares opened 2.7 percent lower Wednesday, tracking overnight losses on Wall Street as investors reassessed the next phase of artificial intelligence (AI) trade.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 203.83 points, or 2.7 percent, to 7,452.48 at the opening bell.
Overnight, the Dow Jones Industrial Average fell 0.25 percent, while the tech-heavy Nasdaq Composite declined 1.16 percent.
Local technology shares extended their losses, weighing on the benchmark index.
Investors are now focusing on whether rising capital spending, intensifying competition and expanding production capacity will generate the earnings growth needed to justify elevated valuations of technology companies.
Market bellwether Samsung Electronics fell 1.69 percent, while chip giant SK hynix declined 1.54 percent.
