Kospi opens lower on continued tech losses

Stocks opened lower Wednesday, tracking overnight losses on Wall Street as investors reassessed the next phase of AI trade.

After opening 2.7 percent lower, the benchmark Kospi pared losses to trade down 108.18 points, or 1.41 percent, at 7,548.13 as of 9:15 a.m.

Overnight, the Dow Jones Industrial Average fell 0.25 percent, while the tech-heavy Nasdaq Composite declined 1.16 percent.

Local technology shares extended their losses, weighing on the benchmark index.

Investors are now focusing on whether rising capital spending, intensifying competition and expanding production capacity will generate the earnings growth needed to justify elevated valuations of technology companies.

Tech stocks led the declines.

Market bellwether Samsung Electronics fell 1.69 percent, while chip giant SK hynix declined 0.95 percent.

Top carmaker Hyundai Motor dropped 3.2 percent, and shipping firm Hanwha Ocean plunged 5.46 percent.

Among gainers, home appliance maker LG Electronics rose 1.06 percent, and LG Display climbed 5.33 percent.

The Korean won strengthened by 2.85 won from the previous session, trading at 1,518.65 won against the U.S. dollar as of 9:15 a.m.

Yonhap