Seoul Stock Exchange Opens Lower Mirroring US Tech Dip

The Seoul stock market had a sluggish opening on Thursday, with South Korean technology stocks reflecting the previous night's declines in major US tech firms such as Nvidia and Microsoft. In the early trade, the Korea Composite Stock Price Index fell by 8.91 points, a 0.36 percent decrease, setting the index at 2,486.47.

US Market Influence

The downturn comes on the heels of losses across all three primary US stock indices, which occurred in spite of job market data suggesting the possibility of the Federal Reserve reducing its interest rates at the start of the next year. Notably, AI chip titan Nvidia experienced a 2.3 percent drop, with tech giants Microsoft and Amazon also seeing declines over 1 percent.

Impact on South Korean Companies

Back in Seoul, the downturn was led by semiconductor and tech sectors pulling the Kospi down. Electronics powerhouse Samsung saw a modest dip of 0.28 percent, while its counterpart in the chipmaking sector, SK hynix, managed a slight rise of 0.72 percent. In the battery industry, LG Energy Solution's shares decreased by 0.59 percent, contrasting with gains from Samsung SDI and Posco Future M which went up by 0.81 percent and 3.14 percent, respectively.

The auto and IT segments were also hit by losses, with Hyundai Motor down by 0.66 percent and Kia falling by 1.18 percent. Additionally, IT firms such as internet company Naver and mobile messenger service operator Kakao receded by 1.17 percent and 0.59 percent, respectively.

The biotech sector did not escape the downtrend, as evidenced by Samsung Biologics and Celltrion whose shares slid 0.57 percent and 1.5 percent, respectively.

Currency Fluctuations

In the realm of currency, the Korean won traded lower against the US dollar, down 4.4 won, priced at 1,317.50 won to the dollar.

Seoul, Stocks, Technology