Seoul shares return gains late Wednesday morning on tech sell-off

Seoul stocks erased early gains and fell 3.21% late Wednesday morning as investors sold off semiconductors and large-cap tech shares, driven by BlackRock's downgrade of emerging-market equities over AI concentration risks. The KOSPI dropped 272.5 points to 8,203.98, with Samsung Electronics and SK hynix leading declines.

Seoul stocks returned earlier gains late Wednesday morning, as investors offloaded semiconductors and large-cap tech shares. After opening sharply higher, the benchmark Korea Composite Stock Price Index KOSPI changed its trajectory, to fall 272.5 points, or 3.21 percent, to 8,203.98, as of 11:20 a.m. Overnight, U.S. stocks closed higher on a continued chip rally, while investors closely watched developments regarding peace talks between Washington and Tehran. The two sides are expected to meet in Qatar's capital this week for further negotiations. The decline also came as Black Rock Inc. downgraded its view on emerging-market equities, including South Korea, citing concentration risks in artificial intelligence AI -related companies. In Seoul, most market heavyweights were trading lower. Top-cap Samsung Electronics fell 5.39 percent, while its rival SK hynix dipped 4.53 percent. Industry leader Hyundai Motor retreated 3.74 percent, battery maker LG Energy Solution slid 4.01 percent, and leading financial company KB Financial moved down 2.45 percent. The Korean won was quoted at 1,558.3 wo