South Korea stocks plunge as US midterm results spark AI selloff
Semiconductor shares led the sell-off as investors worried a Democratic-led Congress could slow data-center growth and weaken demand for AI chips.
- On Friday, the South Korean benchmark KOSPI plunged more than 8% in early trading, triggering a 20-minute circuit breaker as it fell below the 5,000 mark for the first time in months.
- Investors dumped chipmakers following a sharp overnight sell-off on Wall Street, where concerns grew that Democrats' midterm election victories could lead to stricter regulations on data-center development, potentially curbing demand for AI chips.
- Shares of major chipmakers suffered sharply, with SK hynix tumbling about 11.7% and Samsung Electronics falling about 10% in early trading, as selling pressure spread to other large stocks including Hyundai Motor, down 6.8%.
- Finance Minister Lee Hyoung-il pledged Friday that financial authorities will formulate measures to stabilize market volatility, with speculation about potential interventions including a short-selling ban or stock market stabilization fund.
- Despite the turmoil, President Lee Jae Myung committed in his budget speech on Nov. 2 to doubling spending on AI and semiconductors to a record $16 billion in 2027, underscoring South Korea's heavy economic reliance on the sector.
53 Articles
53 Articles
Korea, Taiwan and Japan take first jolt from Democratic AI shock
SEOUL – The fallout from this week’s US midterms is already upending South Korea’s financial system. On Friday, the Kospi plunged more than 8% and fell below 5,000 for the first time since February. Investors clearly fear the Democratic sweep on November 3 will delay or halt data center construction in the US. Chip makers […]
The sharp decline in the US market is impacting investors' portfolios. Even though the Indian market is rising, most investors' portfolios are in the red. In one country, the decline was so severe that trading was halted for 20 minutes.
A worldwide sale of chip and tech stocks sends important stock indices downside. In Seoul, trade was temporarily suspended. In the USA, it was the worst decline since 2020.
The sale of the tech shares spills over from the USA to Asia. The South Korean lead index collapses by more than eight percent. Prices also rush down in Japan and China.
Seoul, Nov 6 (EFE).- The South Korean government began announcing on Friday measures to stabilize the sharp fluctuations in the South Korean park after the main stock market index, the Kospi, began the day with a fall of more than 8% in the face of fears by the artificial intelligence sector (AI).During the meeting [...] The Seoul entry begins to announce stabilization measures in the face of the collapse of the South Korean Stock Exchange was f…
Coverage Details
Bias Distribution
- 55% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
