Kospi opens lower on U.S. tech losses, profit taking

Stocks started a tad lower Friday following tech losses on Wall Street and a sharp rise the previous session as investors are worried about the valuation of AI-related shares and a possible rate hike by the Federal Reserve.

After opening 1.31 percent lower, the benchmark Kospi further lost 152.4 points, or 1.71 percent, to 8,777.9 as of 9:15 a.m.

The index spiked 5.42 percent the previous day.

Overnight, U.S. stocks closed mixed as investors remained doubtful of large-scale AI investments and their profits, while data showed that U.S. consumer prices rose 4.1 percent in May, raising the possibility that the Federal Reserve would increase key rates.

The S&P 500 lost 0.01 percent and the Nasdaq composite fell 0.46 percent, while the Dow Jones Industrial Average rose 0.14 percent.

In Seoul, market bellwether Samsung Electronics retreated 1.67 percent and chip giant SK hynix fell 1.68 percent.

Top carmaker Hyundai Motor dropped 2.78 percent and its sister Kia declined 2.51 percent.

Defense giant Hanwha Aerospace slid 4.68 percent and energy company Doosan Enerbility dipped 3.3 percent.

The Korean weakened by 6.2 won from the previous session, trading at 1,548.3 won against the U.S. dollar as of 9:15 a.m.

Yonhap