South Korea's stock market closed down 5.4%, and technology stocks continued to fall
South Korean stocks fell 5.4% on Wednesday, with technology stocks continuing to fall as investors reassessed the prospects for artificial intelligence (AI) deals. The South Korean won rose against the U.S. dollar. The Korea Composite Stock Price Index (KOSPI) continued to fall after opening down 2.7%, and finally closed down 409.52 points, or 5.4%, at 7246.79 points. The trading volume on the day reached 495.75 million shares, with a turnover of 41.65 trillion won (approximately US$27.78 billion). There were more declining stocks than advancing stocks, with a ratio of 763 to 124. Analysts said the continued decline in South Korean stocks was mainly affected by investor concerns that increased capital expenditures and capacity expansion by large technology companies may take longer to achieve earnings growth to support their higher valuation levels. In terms of individual stocks, market benchmark Samsung Electronics fell 6.25% to 277,500 won, and its competitor SK Hynix fell 5.68% to 2,076,000 won. Shares fell 3.55% to 462,500 won, and defense company Hanwha Airways fell 7.22% to 1,041,000 won. Among rising stocks, shipping companies M rose 2.3% to 20,050 won, and S-Oil rose 3.3% to 131,600 won. As of 3:30 pm local time, the exchange rate of South Korean won against the US dollar was 1,498.5 won, an increase of 29.7 won from the previous trading day.