Seoul shares open sharply lower on tech slump amid Middle East uncertainty

Seoul shares plunged sharply Friday, with the KOSPI falling 5.2 percent to 8,190.25, driven by a tech sector selloff and uncertainty over the U.S.-Iran peace deal. Program trading was suspended after the KOSPI 200 Futures index dropped 5 percent, as declines in AI-related stocks, including a 12 percent tumble by Broadcom, weighed on markets. The losses came despite a mixed close on Wall Street and a retreat in oil prices after reports of a conditional ceasefire agreement by Israel.

Korean stocks opened sharply lower Friday as investors took a breather following a recent rally in tech shares amid uncertainty over the U.S.-Iran peace deal. After opening 3.66 percent lower, the benchmark Korea Composite Stock Price Index KOSPI fell 449.16 points, or 5.2 percent, to 8,190.25 as of 9:15 a.m. The Korea Exchange suspended program trading for the KOSPI for five minutes at around 9:08 a.m., a measure issued when the KOSPI 200 Futures index decreases 5 percent or more for at least one minute. Overnight, major U.S. stocks closed mixed. The Dow Jones Industrial Average rose 1.73 percent, and the S&P 500 added 0.41 percent to 7,584.31. The tech-heavy Nasdaq composite slipped 0.09 percent as declines in artificial intelligence-related stocks weighed on the index. Broadcom tumbled more than 12 percent after the U.S. chipmaker's quarterly results and outlook for AI-related revenue fell short of investors' lofty expectations. Oil prices retreated after three consecutive sessions of gains, as investor sentiment improved following reports that Israel had agreed to a conditional cease