The dealing room at Hana Bank in Seoul, Tuesday / Yonhap
Korean stocks opened sharply lower Wednesday, tracking overnight losses on Wall Street caused by a drop in blue chip tech shares and a faster-than-estimated rise in U.S. inflation, as well as uncertainties over peace talks between the United States and Iran.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 129.5 points, or 1.69 percent, to 7,513.65 at the opening bell.
The KOSPI snapped its five-day winning streak Tuesday, after rising as high as 7,999.67 during intraday trading, as investors moved to take profits after a record-breaking run led by large-cap tech shares, including Samsung Electronics and SK hynix.
Overnight losses on Wall Street further sapped investors' risk appetite, renewing concerns over the sustainability of massive investments in the artificial intelligence sector.
The tech-heavy Nasdaq composite closed 0.71 percent lower and the S&P 500 fell 0.16 percent, while the Dow Jones Industrial Average gained 0.11 percent.
Investors also remained concerned over a rise in U.S. inflation in April, mainly due to oil prices driven up by the U.S.-Israeli war against Iran.
Market attention is also being placed on whether unionized workers of Samsung Electronics will decide to go ahead with a general strike after the company's labor union and management failed to narrow their differences over performance-based bonuses through government-led mediation talks held overnight.
Source: Korea Times News
