KOSPI sinks on AI-chip selloff as rate hike and weak sentiment weigh

The KOSPI edged lower Friday as investors remained cautious, with weakness in chip stocks and lingering inflation concerns over the Middle East conflict keeping risk appetite in check. The benchmark index closed at 6,258.77, down 0.6 percent from the previous session. It opened 1.09 percent higher but gave up its early gains and slipped into negative territory. Foreign investors sold a net 858.1 billion won ($605.7 million) worth of shares, while institutional and retail investors bought a net 579 billion won and 267 billion won, respectively. SK hynix fell 4.88 percent to close at 1.422 million won, while Samsung Electronics edged up 0.22 percent to finish at 231,000 won. Reports that Nvidia is considering lowering the high-bandwidth memory (HBM) specifications for its Rubin Ultra platform dampened sentiment toward chip stocks. SK hynix, which has greater exposure to HBM, came under pressure and dragged the benchmark lower. Still, Micron reiterated that memory supply remains tight, noting that memory chips now account for as much as 50 percent of the value of artificial intelligence comp

The KOSPI plunged more than 4 percent Thursday, giving up gains from the previous two sessions as weakness in major semiconductor stocks weighed on the market. The tech-heavy Kosdaq swung between gains and losses before closing up 0.26 percent, extending its winning streak to five sessions. The KOSPI opened at 6,478.75, down by 119.51 points, or 1.81 percent, and extended its losses to close at 6,296.38, down 301.88 points, or 4.58 percent. Heavy selling pressure during the session prompted the Korea Exchange to suspend program selling orders for five minutes at around 10:18 a.m. under its sidecar mechanism. The benchmark index had climbed 3.76 percent the previous day for its second straight advance before reversing course Thursday. U.S. stocks provided mixed signals overnight. Nvidia, the leading AI chipmaker, gained 3.44 percent after SpaceX said it would use Nvidia chips exclusively for its data center infrastructure. AMD, on the other hand, dropped 7.04 percent after its outlook was viewed as weaker than expected. Alphabet also declined 4.06 percent after reports that Jeff Dean, a sen

South Korea's benchmark Kospi extended its sharp decline on Thursday as a global technology selloff dragged heavyweight chipmakers Samsung Electronics and SK Hynix lower. The slump has intensified losses for retail investors and raised concerns over market concentration, while policymakers and analysts assess the outlook for the country's equity market.

South Korean stocks slipped, as heavyweight chipmakers faced selloffs after Friday’s record gains while investors unwound leverage-backed trades.

South Korea’s benchmark Kospi index witnessed a historic rally on Friday, rising 17% in its biggest single-day percentage gain ever, as global technology stocks recovered and investors renewed their interest in artificial intelligence-linked companies.The surge was driven largely by semiconductor giants, with SK Hynix and Samsung Electronics gaining more than 23% each. Taiwan Semiconductor Manufacturing Co. also advanced 10%, making the three chipmakers among the biggest contributors to the MSCI Asia Pacific equities index. South Korea’s KOSPI Extends Crash, Falls 10% After SK Hynix Earnings MissThe broader emerging market rally also strengthened, with the MSCI emerging market equities index climbing as much as 6.1%, marking its biggest increase in six years. The index ended the week with a gain of 1.8%. A corresponding emerging market currency index also rose by around 0.3%.The gains across Asian markets followed a strong recovery in US technology shares, particularly semiconductor stocks, which recorded their largest jump in more than a year. Nasdaq 100 futures indicated further gains after the technology-heavy index ended a six-session losing streak.Amazon.com shares surged 9.5% in after-hours trading after the company reported stronger-than-expected earnings. However, Apple shares declined more than 6% after supply-related challenges affected its sales outlook.The rebound in semiconductor stocks provided relief to investors following a sharp selloff earlier in the week. The decline had been triggered by concerns that the massive investments being made in artificial intelligence infrastructure may not deliver sufficient returns in the near term.Sensex, Nifty Trade Marginally Higher As Financial Stocks Offset IT Sector Decline Apart from technology stocks, investors are closely monitoring economic indicators, including the strength of the US dollar and rising crude oil prices. Oil prices have climbed more than 20% this month, raising concerns over potential inflationary pressures.Brent crude prices edged lower on Friday as shipping activity through the Strait of Hormuz showed signs of improvement despite ongoing geopolitical tensions in the Middle East.Markets will continue to track corporate earnings, inflation trends and developments in the global AI sector to determine whether the current technology-led recovery can continue.

After a sharp sell-off, South Korea’s stock market rallied as concerns about overspending on artificial intelligence eased, sending the country’s chip shares higher.