South Korean stocks fell in Wednesday morning trading, led by declines in technology shares amid fears of an AI bubble and waning expectations for a US Federal Reserve rate cut. The KOSPI index was down 0.16 percent at 3,947.25 as of 11:20 a.m. It had dropped more sharply at the open but recovered somewhat.
On Tuesday, November 18, the KOSPI index plunged 3.32 percent to close at 3,953.62, marking the first time below 4,000 since November 7. Institutions and foreign investors net sold shares worth 676.82 billion won and 550.22 billion won, respectively, while retail investors net bought 1.24 trillion won. Trading volume was 317.62 million shares worth 13.98 trillion won, with 817 losers against 83 winners.
Han Ji-young, a researcher at Kiwoom Securities, said, "Institutions are generally reducing their exposure to AI-related stocks, including Nvidia, according to recent data, which is increasing uncertainty around the sector amid spreading concerns of an AI bubble." She added, "But the AI growth narrative appears intact, given Amazon's successful $15 billion corporate bond issuance."
On Wednesday, November 19, the KOSPI opened lower, falling 1.15 percent to 3,908.2 in the first 15 minutes, tracking overnight Wall Street losses where the Dow dropped 1.07 percent and Nasdaq 1.21 percent. Institutions were net sellers, offset by foreign and retail buying. Tech shares faced heavy pressure, with Samsung Electronics down 1.94 percent, SK hynix 2.11 percent, LG Energy Solution 1.47 percent, and Doosan Enerbility 1.19 percent. Shipbuilders like HD Hyundai Heavy fell 3.81 percent and Hanwha Ocean 3.21 percent.
By 11:20 a.m., the index had recovered to 3,947.25, down 0.16 percent. Samsung Electronics was off 1.12 percent, SK hynix 1.4 percent, but automakers rose with Hyundai Motor up 0.38 percent and Kia 1.31 percent. Hanwha Aerospace gained 1.3 percent, KB Financial 0.57 percent, and Naver 0.2 percent.
The won traded at 1,463.5 against the dollar at 9:15 a.m., up 1.8 won, and 1,464.45 at 11:20 a.m., up 0.85 won. Investors are watching Nvidia's earnings and Fed policy signals.
