Seoul shares sharply down late Thu. morning as U.S. midterm results spark AI woes
Quick Look
- South Korean stocks dropped sharply on Nov.
- 5 as investors worried about U.S.
- AI policy after midterm elections, with KOSPI falling 3.27% to 5,498.03 and Samsung Electronics down 5.05%.
AI-generated summary
Why It Matters
South Korean stocks opened lower and extended losses late Thursday morning as investors worried about the future of U.S. AI policies after the midterm elections. Overnight on Wall Street, major stock indexes finished higher as investors welcomed the Democrats-led Congress.
SEOUL, Nov. 5 (Yonhap) -- South Korean stocks traded sharply lower late Thursday morning as investors were worried about the future of U.S. artificial intelligence (AI) policies after the midterm elections.
After opening 1.82 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, dropping 185.77 points, or 3.27 percent, to 5,498.03 as of 11:20 a.m.
Overnight on Wall Street, major stock indexes finished higher as investors welcomed the Democrats-led Congress.
However, the election outcome raised concerns that the new House and Senate would tighten regulations on AI data centers.
In Seoul, semiconductor shares traded in negative territory.
Tech giant Samsung Electronics sank 5.05 percent, and SK hynix tumbled 6.52 percent.
Hanmi Semiconductor, a leading chip equipment maker, plunged 7.58 percent, and Samsung Electro-Mechanics, the electronic component affiliate of Samsung Electronics, dived 10.04 percent.
Leading oil refinery SK Innovation lost 5.9 percent, and defense giant Hanwha Aerospace fell 4.76 percent.
The Korean won was trading at 1,342.15 won against the U.S. dollar as of 11:20 a.m., down 0.65 won from the previous stock trading session's close.
Open Questions
- What specific AI data center regulations might the new House and Senate propose?
- How long will the stock market decline persist?
- Will the Korean won continue to weaken against the U.S. dollar?
