Seoul shares open sharply lower on US tech slide, Iran tensions

South Korea’s stock market opened sharply lower on June 6, mirroring overnight losses in US markets driven by concerns over artificial intelligence valuations and rising tensions between the United States and Iran. The Korea Composite Stock Price Index (Kospi) fell 288.94 points, or 3.74%, to 7,441.88 within the first 15 minutes of trading, after initially dropping 2.86%. The decline aligned with major US indexes, with the Nasdaq Composite losing 1.98%, the S&P 500 down 1.62%, and the Dow Jones Industrial Average falling 1.87%. Tech giants like Nvidia (-3.73%), Broadcom (-5.12%), and AMD (-4.86%) led the sell-off, while Super Micro Computer tumbled 28%, raising fears of an AI bubble. Market sentiment worsened after reports of additional US strikes against Iran, which threatened to target vessels passing through the Strait of Hormuz. Analysts noted that softer-than-expected US inflation data for May failed to ease concerns about a potential hawkish shift by the Federal Reserve. In Seoul, most major stocks fell, with Samsung Electronics dropping 3.47% and SK hynix losing 2.54%. AI-focused SK Square plummeted 7.86%, while automakers Hyundai Motor (-5.81%) and Kia (-5.13%) also declined. Battery makers LG Energy Solution (-3.76%) and Samsung SDI (-5.14%) saw losses, alongside Doosan Enerbility (-5.93%) and LG Electronics (-4.91%). The Korean won weakened to 1,524.8 against the US dollar, down 0.6 won from the previous session. The broader market downturn reflected global investor caution amid geopolitical risks and economic uncertainty.