Kospi opens lower following tech declines on Wall Street

Seoul stocks opened lower Wednesday, partly driven by investors pulling out of AI-related stocks in the U.S. market.

The benchmark Kospi opened 104.47 points, or 1.2 percent lower, at 8,622.13.

The index followed declines on Wall Street overnight, where a tech sell-off knocked down the S&P500 by some 0.5 percent and the Nasdaq by 1.15 percent.

Investors were also cautious ahead of the Federal Reserve's policy update due Wednesday afternoon, with some concerned that the new Fed chair could signal a more hawkish tone in this first meeting.

"Given that overall market conditions are neutral or better, the market is expected to rotate away from semiconductors to other sectors and narrow losses," said Han Ji-young, an analyst from Kiwoom Securities.

Yonap