Kospi opens lower on concerns about AI-linked sectors, escalating Iran tensions

Shares opened lower on Monday after a chip-driven sell-off on Wall Street, but Korea's two largest semiconductor makers moved the other way.

The Kospi fell 35.41 points, or 0.52 percent, to 6,785.19 as of 9:19 a.m. Samsung Electronics rose 0.39 percent, and SK hynix gained 1.79 percent. Most other stocks traded lower.

U.S. indexes closed lower on Friday on concerns about AI-linked sectors, including chipmaking. SanDisk and Micron each fell more than 8 percent.

Oil added to the pressure. Brent settled at $88.10 a barrel on Friday, up 4.6 percent, after Kuwait said Iran attacked a power and water desalination plant. Crude gained more than 14 percent last week as the United States and Iran traded strikes.

U.S. Central Command said on Sunday that a service member was killed in northern Iraq during a controlled detonation of ordnance from a downed Iranian drone. It disclosed two deaths and one service member missing in an Iranian attack on a base in Jordan the previous day.

In Seoul, most stocks traded lower, while semiconductors gained ground.

Hyundai Motor fell 4 percent, LG Energy Solution shed 2.54 percent and Hanwha Aerospace declined 3.92 percent.

BY CHO YONG-JUN, YONHAP [[email protected]]