South Korean stocks traded lower late Tuesday morning, led by declines in tech shares amid weakening investor sentiment over diminished expectations for a Federal Reserve rate cut. The KOSPI index fell 1.95 percent to 4,009.65 as of 11:20 a.m. The drop followed overnight losses on Wall Street.
South Korean stocks traded lower late Tuesday morning, driven by declines in chip and other tech shares, as investor sentiment weakened amid fading hopes for a Federal Reserve rate cut. The benchmark Korea Composite Stock Price Index (KOSPI) lost 79.6 points, or 1.95 percent, to 4,009.65 as of 11:20 a.m. The index opened lower, following overnight Wall Street losses, and extended declines on selling by institutions and foreigners.
Investors are monitoring the Fed's policy path, with officials sending mixed signals. According to foreign media, Fed Vice Chair Philip Jefferson cautioned that policymakers must proceed slowly, noting risks to the labor market are skewed to the downside.
In Seoul, tech shares fell after gains in the prior session. Market bellwether Samsung Electronics dropped 1.69 percent, while chip giant SK hynix sank 4.13 percent. Leading battery maker LG Energy Solution dived 3.02 percent, and LG Chem shed 0.62 percent. Nuclear power plant builder Doosan Enerbility lost 0.89 percent.
Automakers drifted lower: top automaker Hyundai Motor fell 0.02 percent, and affiliate Kia retreated 1.36 percent. Leading financial group KB Financial skidded 3.08 percent, while internet portal operator Naver shed 0.78 percent.
Shipbuilders bucked the trend, with HD Hyundai Heavy advancing 2.65 percent and rival Hanwha Ocean rising 0.61 percent. State-run utility KEPCO surged 2.84 percent.
The previous session on November 17 saw the KOSPI rebound sharply 1.94 percent to 4,089.25, led by a semiconductor rally as AI-related valuation concerns eased. Foreign investors net bought 518.18 billion won worth of shares. Seo Sang-young, an analyst at Mirae Asset Securities, said, "The news that Samsung Electronics raised prices on some memory chips has been interpreted as a sign that AI-related chips are in short supply and demand is expected to rise further. It seems to help ease some fears of an AI bubble." He added, "Nvidia is projected to announce better-than-expected earnings, and the focus now is on how the company will shape the narrative for the sector."
The local currency traded at 1,466.65 won per U.S. dollar at 11:20 a.m., down 8.65 won from the prior session. At the open around 9:15 a.m., the KOSPI was down 0.53 percent at 4,067.76.
