Svmuureported that South Korean stocks opened sharply lower on Wednesday, tracking overnight losses on Wall Street, pressured by declines in major US tech stocks, US inflation rising more than expected, and uncertainties surrounding US-Iran peace talks. After opening 1.7% lower, the Korea Composite Stock Price Index (KOSPI) extended its decline to over 3%. The index had ended a five-day winning streak on Tuesday, after rising to a high of nearly 8,000 points during the session, prompting investors to begin taking profits.
The overnight decline in Wall Street tech stocks further dampened investor risk appetite, reigniting concerns over the sustainability of massive investments in the artificial intelligence sector.
Investors are also worried about rising US inflation in April, mainly due to the US and Israel's war with Iran pushing up oil prices.
The market is also watching whether the Samsung Electronics union will proceed with a full-scale strike, after the union and company management failed to bridge their differences over performance bonus issues during government-led overnight mediation talks. (Jin Shi)