South Korea’s KOSPI opened lower on Tuesday as continued weakness in semiconductor stocks weighed on the market amid growing concerns over AI spending and rising oil prices.
The KOSPI fell 0.76% at the open to 6,633.30 points, with major chipmakers Samsung Electronics and SK Hynix extending their losses.
Samsung Electronics opened 0.2% lower at KRW248,500, while SK Hynix fell 0.41% to KRW1.69 million.
The weaker opening followed losses in US technology and semiconductor stocks, as investors reassessed the outlook for artificial intelligence capital expenditure after industry leaders raised concerns over the risks and pace of AI development.
The Philadelphia Semiconductor Index fell 5.2% in the previous session, while Nvidia declined 3%, Advanced Micro Devices lost 4.5% and Micron dropped 5.4%.
South Korean stocks also faced pressure from higher crude oil prices as escalating tensions in the Middle East pushed Brent crude above US$105 a barrel.
The rise in oil prices has heightened concerns over imported inflation and higher production costs in energy-dependent economies such as South Korea.
Investors are also awaiting a series of major central bank decisions this week, with the US Federal Reserve, Bank of Japan and Bank of England all due to announce their latest interest rate decisions.
Meanwhile, Japan’s Nikkei 225 bucked the regional weakness after opening lower, rising 0.35% to 63,717.83 points. SoftBank jumped 4.85% to JPY6,122 while Kioxia gained 1.27% to JPY51,230.
