Seoul shares down over 3 pct late Wed. morning amid U.S.-Iran tensions, tech losses
South Korea’s KOSPI index dropped over 3% late Wednesday morning due to escalating U.S.-Iran tensions and losses in tech stocks, with major companies like Samsung Electronics and SK hynix declining sharply. The market also faced renewed doubts over AI-related stock valuations after Crusoe Energy Systems suspended a project at a major tech firm’s request.
South Korea’s benchmark Korea Composite Stock Price Index (KOSPI) fell 3.54% to 7,809.94 by 11:20 a.m. on June 10, driven by escalating tensions between the U.S. and Iran after a U.S. Apache helicopter was shot down in the Strait of Hormuz. The market opened 2.43% lower and extended losses amid fears of broader conflict, with the KOSPI losing 286.99 points. Major tech stocks led the decline, including Samsung Electronics (-5.36%), SK hynix (-5.46%), and SK Square (-4.81%), mirroring losses in U.S. markets where Apple dropped 3.64% and Broadcom fell 1.12%. Investor sentiment also weakened after Crusoe Energy Systems, a data center developer, suspended a project due to a request from an unidentified major tech customer, raising concerns about AI stock valuations. The Korean won depreciated to 1,523.6 against the U.S. dollar, down 11.5 won from the previous session. Among the few gains, shipbuilder HD Hyundai Heavy rose 5.56%, while most other sectors, including auto and home appliances, saw declines. The downturn reflected broader market jitters, with U.S. indices mixed: the Nasdaq fell 0.97%, the S&P 500 dropped 0.26%, and the Dow Jones rose slightly by 0.17%. Analysts linked the sell-off to geopolitical risks and tech sector volatility, particularly in AI-related investments. The market’s sharp drop underscored investor caution amid dual pressures—geopolitical instability and lingering doubts over AI-driven stock valuations. The KOSPI’s performance mirrored global tech declines, signaling broader risk aversion in Asian markets.
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