Seoul: South Korean stocks opened significantly lower today, mirroring declines in the U.S. markets, as investors reacted to disappointing earnings reports from major companies including chip equipment-maker ASML Holdings.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 29.41 points, or 1.12 percent, settling at 2,604.04 within the first quarter-hour of trading. This downturn follows a poor performance on Wall Street where the Dow Jones Industrial Average fell by 0.75 percent and the Nasdaq Composite declined by 1.01 percent, largely due to poorer-than-expected earnings projections from ASML Holdings.
In Seoul, the downward trend was widespread, with declines noted across various sectors. Samsung Electronics, a global leader in memory chips, saw its shares decrease by 2.46 percent, while its chipmaking competitor SK hynix recorded a more significant fall of 4.2 percent. Financial stocks also faced a tough day; KB Financial Group and Shinhan Financial Group sa
w their shares drop by 1.05 percent and 1.38 percent, respectively.
Other major companies such as Lotte Shopping and entertainment conglomerate CJ ENM were not immune to the downturn, with declines of 0.63 percent and 2.03 percent, respectively. Additionally, the South Korean won weakened against the U.S. dollar, trading at 1,366.15, down by 4.85 won from the previous session.
The broader impact of U.S. market fluctuations on global markets, particularly in tech and finance-heavy indices like the KOSPI, underscores the interconnected nature of modern stock markets and the sensitivity of local markets to international events.