Seoul stocks open lower, AI-related stocks face pullbacks

SEOUL, June 17 (Yonhap) -- Seoul stocks opened lower Wednesday, partly driven by investors pulling out of stocks related to artificial intelligence (AI) in the U.S. market.

The benchmark Korea Composite Stock Price Index (KOSPI) was down 75.79 points, or 0.87 percent, to 8,650.81, as of 9:15 a.m.

The index followed declines on Wall Street overnight, where a tech sell-off knocked down the S&P500 by some 0.5 percent and the Nasdaq by 1.15 percent.

Nvidia surprised investors with a plan to issue US$25 billion worth of bonds, which marked the chip giant's first bond sale in five years. Its shares fell 2.4 percent.

Investors were also cautious ahead of the Federal Reserve's policy update due Wednesday (U.S. time) afternoon, with some concerned that the new Fed chair could signal a more hawkish tone in this first meeting.

"Given that overall market conditions are neutral or better, the market is expected to rotate away from semiconductors to other sectors and narrow losses," said Han Ji-young, an analyst from Kiwoom Securities.

Market top-cap Samsung Electronics fell 2.41 percent, while its rival SK hynix inched up 0.76 percent.

Top carmaker Hyundai Motor dipped 3.2 percent, and major financial group KB Financial fell 1.63 percent, while defense giant Hanwha Aerospace moved up 2.28 percent.

The Korean won was trading at 1,510.4 won against the U.S. dollar, as of 9:15 a.m., up 1.2 won from the previous session.