The benchmark KOSPI suffered sharp declines driven by foreign outflows totaling 844.9 billion won as market participants responded to tech earnings, inflation figures, and the U.S. Federal Reserve's rate stance. Chipmakers led the retreat, with Samsung Electronics and SK Hynix dropping significantly amid broader slumps across automakers such as Hyundai Motor. The severe morning volatility triggered a five-minute sidecar trading curb to halt algorithmic trading. In contrast to the equity plunge, domestic government bond yields declined across three-year and 10-year maturities while the won slightly strengthened.
Key points
Profitability concerns surrounding major artificial intelligence investments continue to…: Profitability concerns surrounding major artificial intelligence investments continue to exert heavy pressure on regional hardware suppliers.
October's steep 18% decline has successfully erased all equity gains accumulated by the K…: October's steep 18% decline has successfully erased all equity gains accumulated by the KOSPI over the previous two months.
Select defensive names like Samsung Biologics managed to advance despite overwhelming neg…: Select defensive names like Samsung Biologics managed to advance despite overwhelming negative market breadth across 749 declining stocks.
Sources checked by our analysis pipeline: 1
The KOSPI fell 314.58 points, or 5.3%, to 5,623.08 as of 0217 GMT. During the session, the index triggered a sidecar trading curb, temporarily suspending algorithmic trading for five minutes amid heightened volatility.
Read more: Global Market Today: Asian stocks slide as tech earnings disappoint, AI fears mount
The benchmark has lost around 18% so far in October, reversing gains recorded over the previous two months.
The selloff followed a sharp decline on Wall Street on Thursday, where investors reassessed heavy artificial intelligence spending by major technology companies while digesting corporate earnings and key inflation data. The weakness came a day after the US Federal Reserve kept interest rates unchanged.
Semiconductor heavyweights led the losses in Seoul, with Samsung Electronics falling 5.93% and SK Hynix declining 8.58%. The two companies came under pressure as investors reduced exposure to AI-linked stocks amid growing concerns over the scale of investments and the potential returns from the technology.
Read more: US Markets Today: US stocks end lower as Alphabet revenue miss revives AI capex jitters
Among other major stocks, battery manufacturer LG Energy…
The benchmark index faced significant selling pressure throughout the trading day, culminating in a notable retreat by the closing bell. Market participants witnessed widespread weakness that pulled the island's primary equity gauge down sharply during the session. The downward momentum reflects a challenging environment for local shares across the entire exchange.
Mainland bourses dropped to a one-year low after overnight Wall Street declines spread worries about the profitability and high infrastructure costs of artificial intelligence. The resulting retreat dragged Chinese hardware and semiconductor equities sharply lower, despite resilient trading across Hong Kong and consumer-focused industries. Investors increasingly rotated into defensive domestic segments to limit exposure to the broader regional downturn.
Investor sentiment turned sharply negative as mounting profitability pressures overshadowed the renewable energy firm's operational momentum. The market selloff was triggered by deteriorating profit margins and lower full-year operational guidance. These margin constraints have prompted several brokerage houses to swiftly downgrade their price targets despite robust delivery volumes.