KOSPI Index Drops as AI Spending Concerns Hit Chipmakers
South Korea's KOSPI index fell over 3% on Monday as investor concerns over AI infrastructure returns triggered a sell-off in major semiconductor stocks.
The Korea Composite Stock Price Index (KOSPI) fell below 5,600 on Monday, October 19, recording an intraday decline of 3.17%. The downturn followed a technology-led sell-off on Wall Street, driven by investor skepticism regarding whether massive spending on artificial intelligence infrastructure will yield sufficient returns.
Major chipmakers led the decline, with SK hynix shares dropping 4% and Samsung Electronics shares falling 3%. This volatility follows a severe market event on October 15, when the KOSPI plummeted more than 8% intraday, triggering a trading halt before closing with a 7.5% loss.
While tech stocks struggled, Korean Air saw gains. Reports on Hyundai Motor Company were mixed, with some sources noting a rise and others a backtrack. Institutional buying helped narrow the KOSPI's losses later in the morning, but investors remain cautious. Market sentiment is currently influenced by uncertainty over interest rate outlooks, upcoming earnings reports from Tesla and Meta Platforms, and the U.S. midterm elections scheduled for November 3.
