In brief
South Korean stocks opened sharply lower on Tuesday, with the KOSPI falling to 5,662.37 as investors fretted over AI spending and the U.S. midterm elections. Major tech giants such as Samsung Electronics and SK hynix slipped more than 4%, and oil prices fell amid optimism for a U.S.-Iran peace deal. In contrast, the U.S. tech market's downturn echoed the same uncertainty, while the Korean won weakened slightly against the dollar.
South Korean stocks opened lower on Tuesday as investors worried about huge AI spending and the upcoming U.S. midterm elections, according to Yonhap.
The Korea Composite Stock Price Index (KOSPI) fell 3.36% to 5,662.37 at 9:15 a.m. as reported by Yonhap’s November 3 story.
Another Yonhap report said the KOSPI fell 2.46% to 5,715.19 at the opening bell, highlighting the market’s shaken confidence.
Market bellwether Samsung Electronics dropped 4.59%, and chipmaker SK hynix slid 5.1%, as shown in the first Yonhap article.
Top carmaker Hyundai Motor fell 1.57%, energy firm Doosan Energility sank 3.77%, shipbuilder HD Hyundai Heavy Industries declined 2.26%, and defense company Hanwha Aerospace slipped 0.81%.
Shares of tech firms Naver and Kakao also fell around 1.3% and 1.1% respectively, when new AI‑related layoffs and regulatory scrutiny were announced, per a separate Yonhap brief.
The U.S. stock market closed mixed overnight, with the Nasdaq Composite and S&P 500 falling 1.07% and 0.51% respectively, while the Dow Jones rose 0.41%.
Oil prices dropped as optimism grew over a potential U.S.-Iran peace agreement.
The Korean won traded at 1,342.05 against the U.S. dollar at 9:15 a.m., up 3.95 won from the previous close.
Investors fear that rapid AI adoption could destabilise the economy, raise job losses in some sectors and invite stricter regulation, especially if U.S. lawmakers pass tighter AI rules after the midterms.
Market analysts expect the market to return close to its opening level by the end of the session unless new developments arise.
