
AI-generated summary
Seoul stocks opened lower and extended losses amid growing concerns over investments in the AI value chain, which triggered a sell-off in major chip shares. U.S. stocks had ended mixed overnight, with technology shares rebounding from their steepest weekly drop since June.
SEOUL, Oct. 20 (Yonhap) -- Seoul stocks were trading sharply lower late Tuesday morning as concerns over investments in the artificial intelligence (AI) value chain sparked a sell-off in major chip shares.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 136.06 points, or 2.36 percent, to 5,631.95 as of 11:20 a.m.
After opening 0.6 percent lower, the index extended its losses to an intraday low of 5,493.24, before recovering some ground.
Overnight, U.S. stocks ended mixed as technology shares rebounded from their steepest weekly drop since June.
The Dow Jones Industrial Average edged down 0.07 percent, while the benchmark S&P 500 rose 0.41 percent and the tech-heavy Nasdaq Composite Index gained 1.11 percent to finish at 26,430.89.
In Seoul, tech stocks led the decline.
Chipmakers Samsung Electronics Co. and SK hynix Inc. fell 1.03 percent and 2.74 percent, respectively.
In contrast, Samsung Electro-Mechanics Co., an electronics components affiliate of Samsung Electronics, gained 2.48 percent after opening lower.
The Korean won was trading at 1,327.6 won against the U.S. dollar as of 11:20 a.m., up 5.5 won from the previous session's close.
AI outlook — possibilities, not facts
Further volatility in Seoul's technology sector if AI investment concerns persist
Likely · Within days
Potential rebound in chip stocks if AI-related spending outlook improves
Possible · Within weeks

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