Seoul shares plunged by nearly 6 percent Wednesday following a nearly 11 percent crash the previous session as investors dumped semiconductor stocks amid growing skepticism over whether massive spending on artificial intelligence (AI) will generate sufficient returns. The local currency strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 360.42 points, or 5.98 percent, to close at 5,663.24, after plunging to an intraday low of 5,262.77. After opening 1.09 percent higher, the KOSPI reversed course and tumbled by up to nearly 12 percent in afternoon trading. At 12:31 p.m., the Korea Exchange activated a marketwide circuit breaker, halting trading in KOSPI-listed stocks for 20 minutes. The broad-based sell-off came amid growing skepticism over whether hefty AI-related investments by major technology companies could generate sufficient returns to justify their lofty market valuations.
Seoul shares turn lower late Wednesday morning on tech losses