(LEAD) KOSPI opens lower amid inflation woes, U.S. tech slump

Lead

South Korean stocks have been on a turbulent ride this week, opening lower on Monday and Tuesday, then paring losses on Wednesday, as investors grappled with persistent inflation worries and a slump in U.S. technology shares. The benchmark Korea Composite Stock Price Index (KOSPI) shed 49.89 points, or 0.67 percent, to 7,443.29 at Monday's opening bell, according to Yonhap News Agency. Losses deepened sharply later that day, with the index falling as much as 317.8 points, or 4.24 percent, to 7,175.38 by 9:15 a.m., triggering a temporary trading halt.

Coverage Comparison

Reports from Yonhap, South Korea's leading wire service, tracked the market's daily movements. On Monday, one report noted the KOSPI opened lower and then extended losses, while another focused on the sharp decline from the start. On Tuesday, coverage shifted to the opening drop and the extension of losses, with one report noting the index closed lower after a choppy session. Wednesday's report highlighted how the index trimmed earlier losses by late morning.

Key Claims

Monday's Open and Decline: According to Yonhap, South Korean stocks opened lower on Monday as investors tracked declines on Wall Street from the previous Friday, when U.S. stocks retreated from record highs amid concerns over rising oil prices and Middle East tensions. The Dow Jones Industrial Average fell 1.07 percent, the S&P 500 dropped 1.24 percent, and the tech-heavy Nasdaq composite lost 1.54 percent. The KOSPI's decline was attributed to profit-taking in technology shares and other market heavyweights, with foreigners leading the selling. By 9:15 a.m., the index had shed 317.8 points, or 4.24 percent, to 7,175.38, and at one point fell to as low as 7,142.71, more than 5 percent down. This triggered a sell-side sidecar, suspending program trading for five minutes.

Tuesday's Volatility: On Tuesday, stocks opened 1.2 percent lower, according to Yonhap, as concerns over inflation and an overnight slump in U.S. tech shares weighed. U.S. stocks had closed mixed on Monday, with the Dow rising 0.32 percent but the S&P 500 and Nasdaq falling 0.07 percent and 0.51 percent, respectively, as President Donald Trump said he had postponed a planned attack on Iran, while crude oil prices surged. The KOSPI extended losses, falling 161.86 points by 9:15 a.m., and later shed 332.8 points, or 4.43 percent, by 11:20 a.m. The index closed down 244.38 points, or 3.25 percent, at 7,271.66, after swinging widely throughout the session. Foreigners extended their sell-offs to a ninth consecutive session, focusing on chipmakers, automakers, and other heavyweights.

Wednesday's Partial Recovery: On Wednesday, according to Yonhap, the KOSPI trimmed earlier losses by late morning, shedding only 7.37 points, or 0.1 percent, to 7,264.29 by 11:20 a.m., as heavyweight technology shares turned higher despite an overnight slump on Wall Street. Samsung Electronics and SK hynix gained 1.63 percent and 0.86 percent, respectively, after opening lower.

Perspectives

Inflation and Geopolitical Tensions: The market's decline was repeatedly attributed to rising inflation concerns, partly driven by the deadlocked situation in the Middle East and surging crude oil prices. Yonhap's reports noted that U.S. President Trump's postponement of an attack on Iran did little to ease market anxiety about long-term inflation.

U.S. Tech Slump: A key factor in the KOSPI's decline was the overnight slump in U.S. technology shares, with big names like Apple and Microsoft closing lower on Tuesday's U.S. session. Investors were also awaiting Nvidia's earnings report, as the AI chip giant's performance is seen as a bellwether for the tech sector.

Domestic Profit-Taking and Foreign Selling: Foreign investors led the selling spree in Seoul, particularly in chipmakers and other market heavyweights, extending their sell-offs to nine consecutive sessions as of Tuesday. This was coupled with profit-taking following a record-breaking rally that had briefly pushed the KOSPI above the 8,000-point mark just days earlier.

Partial Rebound on Wednesday: The market showed signs of stabilization on Wednesday as technology shares rebounded, with gains in Samsung Electronics and SK hynix helping to trim earlier losses, despite lingering inflation concerns.