South Korean Stocks Plunge Following Wall Street Tech Sell-Off
South Korean stocks opened lower Friday as technology shares slumped following Alphabet Inc. revenue misses and concerns over artificial intelligence investment sustainability.
The Korea Composite Stock Price Index fell 3.85 percent to 5,709.23 during Friday morning trading in Seoul. The decline followed overnight losses on Wall Street, where a sell-off in technology shares occurred due to investor concerns regarding the sustainability of artificial intelligence investments.
Alphabet Inc. shares plunged over 12 percent after third-quarter revenue missed market expectations, despite achieving a 25 percent year-on-year increase. This volatility triggered losses for South Korean chip giants Samsung Electronics and SK hynix, which fell 3.66 percent and 6.82 percent, respectively.
Other major industrial players also saw declines. Hyundai Motor Company lowered its annual sales target and investment plans, causing its stock to slip 2.39 percent. Hanwha Aerospace slumped 7.76 percent after reporting weak third-quarter earnings, which the company attributed to delivery delays of K9 self-propelled howitzers to Poland.
