Seoul: South Korean stocks traded markedly lower late Friday morning, led by a decline in semiconductor shares, as renewed concerns over an artificial intelligence (AI) bubble weighed on investor sentiment. The benchmark Korea Composite Stock Price Index (KOSPI) fell 144.29 points, or 3.6 percent, to 3,860.56 as of 11:20 a.m.
According to Yonhap News Agency, the index opened lower, tracking overnight losses on Wall Street, and came under additional pressure from heavy foreign selling. Despite strong quarterly results from Nvidia, concerns about the valuation of AI-related shares have resurfaced following their recent sharp gains. Investors also remained cautious about the Federal Reserve's monetary policy amid reduced expectations for further interest rate cuts.
In Seoul, most top-cap shares drifted lower. Market bellwether Samsung Electronics dipped 5.27 percent, and chip giant SK hynix retreated 8.06 percent. Leading battery maker LG Energy Solution slid 2.95 percent, and LG Chem fell 4.89 percent. Defense giant Hanwha Aerospace shed 5.13 percent, and nuclear power plant builder Doosan Enerbility sank 6.31 percent. Leading shipbuilder HD Hyundai Heavy went down 3.96 percent, while its rival Hanwha Ocean decreased 4 percent. Top steelmaker POSCO tumbled 3.42 percent.
Carmakers traded mixed. Top automaker Hyundai Motor lost 0.95 percent, while its sister affiliate Kia edged up 0.26 percent. Leading financial group KB Financial declined 0.91 percent, while internet portal operator Naver rose 0.97 percent.
The local currency was trading at 1,473.05 won against the U.S. dollar at 11:20 a.m., down 5.15 won from the previous session.