Seoul stocks opened lower on Wednesday as a report on OpenAI's underperformance reignited artificial intelligence sector concerns alongside rising oil prices. The benchmark KOSPI fell 0.09 percent to 6,635.09 in the first 15 minutes of trading. Major Wall Street indexes also declined overnight.
According to Yonhap News Agency and The Korea Times, Seoul stocks opened lower on April 29 amid renewed concerns over the AI sector triggered by a report on ChatGPT maker OpenAI missing revenue and user targets. The benchmark Korea Composite Stock Price Index (KOSPI) declined 5.93 points, or 0.09 percent, to 6,635.09 early in the session. This followed an initial drop of 0.33 percent to 6,619 at the open.
The Wall Street Journal reported Tuesday (U.S. time), citing insiders, that some OpenAI executives worry the company "might not be able to pay for future computing contracts if revenue doesn't grow fast enough." Major Wall Street indexes fell on the news.
Rising oil prices added pressure. Brent crude for June delivery climbed 2.8 percent to over $111 per barrel as U.S.-Iran peace talks stalled. Reports indicated U.S. President Trump is unhappy with Iran's proposal to mutually reopen the Strait of Hormuz and delay nuclear discussions. The United Arab Emirates announced it will leave OPEC next month, though the strait closure limits immediate effects.
Large-cap stocks traded mixed: Samsung Electronics down 0.9 percent, SK hynix up 0.08 percent, Hyundai Motor down 0.36 percent, LG Energy Solution down 0.85 percent, and Hanwha Aerospace up 3.23 percent. The Korean won traded at 1,472.8 against the U.S. dollar, up 0.8 won from the prior close.
