South Korean shares fall for third day on US tech selloff
Korean won weakens against dollar
South Korea benchmark bond yield rises
For the midday report, please click
SEOUL, - Round-up of South Korean financial markets:
** South Korean shares fell for a third straight session on Wednesday, as overnight losses in U.S. technology stocks weighed.
** The benchmark KOSPI lost 21.47 points, or 0.68%, to 3,130.09, the lowest closing level since August 1. It fell as much as 2.29% during the session.
** Overnight declines in Nvidia and other major artificial intelligence -related stocks dragged the S&P 500 and the Nasdaq 0.6% and 1.5% lower, respectively.
** "Profit taking in Wall Street has been weighing on domestic market sentiment as well," said Lee Kyoung-min, an analyst at Daishin Securities.
** "The KOSPI recouped some losses near the close of the session on dip-buying, but volatility is expected to persist for the time being," said Park Kwang-nam, an analyst at Mirae Asset Securities.
** Chipmaker Samsung Electronics rose 0.71%, after media reports said the U.S. was considering taking equity stakes in chip companies in exchange for grants under the CHIPS Act that was meant to spur factory-building in the country.
** Peer SK Hynix fell 2.85%, tracking major customer Nvidia's overnight decline.
** LG Chem rose 2.16% after major South Korean petrochemical companies, including itself, agreed to restructure their operations, including large production cuts.
** Lotte Chemical cut early gains to gain 0.65%, while Hanwha Solutions fell 2.61%.
** Of the total 935 traded issues, 243 advanced and 645 declined.
** Foreigners were net sellers of shares worth 232.6 billion won .
** The won was quoted at 1,398.4 per dollar on the onshore settlement platform, 0.46% lower than Tuesday's close of 1,392.0.
** In the money and debt markets, September futures on three-year treasury bonds lost 0.01 point to 107.29.
** The most liquid three-year Korean treasury bond yield rose 0.1 basis point to 2.446%, while the benchmark 10-year yield added 1.7 basis points to 2.861%.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
25 minutes ago
- Economic Times
Trump thinks owning piece of Intel would be good deal for US: Here's what to know
AP President Donald Trump wants the US government to own a piece of Intel, less than two weeks after demanding the Silicon Valley pioneer dump the CEO that was hired to turn around the slumping chipmaker. If the goal is realised, the investment would deepen the Trump administration's involvement in the computer industry as the president ramps up the pressure for more US companies to manufacture products domestically instead of relying on overseas suppliers. What's happening? The Trump administration is in talks to secure a 10 per cent stake in Intel in exchange for converting government grants that were pledged to Intel under President Joe Biden. If the deal is completed, the US government would become one of Intel's largest shareholders and blur the traditional lines separating the public sector and private sector in a country that remains the world's largest economy. Why would Trump do this? In his second term, Trump has been leveraging his power to reprogramme the operations of major computer chip companies. The administration is requiring Nvidia and Advanced Micro Devices, two companies whose chips are helping to power the craze around artificial intelligence, to pay a 15 per cent commission on their sales of chips in China in exchange for export licenses. Trump's interest in Intel is also being driven by his desire to boost chip production in the US, which has been a focal point of the trade war that he has been waging throughout the world. By lessening the country's dependence on chips manufactured overseas, the president believes the US will be better positioned to maintain its technological lead on China in the race to create artificial intelligence. Didn't Trump want Intel's CEO to quit? That's what the president said August 7 in an unequivocal post calling for Intel CEO Lip-Bu Tan to resign less than five months after the Santa Clara, California, company hired him. The demand was triggered by reports raising national security concerns about Tan's past investments in Chinese tech companies while he was a venture capitalist. But Trump backed off after Tan professed his allegiance to the US in a public letter to Intel employees and went to the White House to meet with the president, who applauded the Intel CEO for having an "amazing story." Why would Intel do a deal? The company isn't commenting about the possibility of the US government becoming a major shareholder, but Intel may have little choice because it is currently dealing from a position of weakness. After enjoying decades of growth while its processors powered the personal computer boom, the company fell into a slump after missing the shift to the mobile computing era unleashed by the iPhone's 2007 debut. Intel has fallen even farther behind in recent years during an artificial intelligence craze that has been a boon for Nvidia and AMD. The company lost nearly USD 19 billion last year and another $3.7 billion in the first six months of this year, prompting Tan to undertake a cost-cutting spree. By the end of this year, Tan expects Intel to have about 75,000 workers, a 25% reduction from the end of last year. Would this deal be unusual? Although rare, it's not unprecedented for the US government to become a significant shareholder in a prominent company. One of the most notable instances occurred during the Great Recession in 2008 when the government injected nearly $50 billion into General Motors in return for a roughly 60% stake in the automaker at a time it was on the verge of bankruptcy. The government ended up with a roughly $10 billion loss after it sold its stock in GM. Would the government run Intel? US Commerce Secretary Howard Lutnick told CNBC during a Tuesday interview that the government has no intention of meddling in Intel's business, and will have its hands tied by holding non-voting shares in the company. But some analysts wonder if the Trump administration's financial ties to Intel might prod more companies looking to curry favour with the president to increase their orders for the company's chips. What government grants does Intel receive? Intel was among the biggest beneficiaries of the Biden administration's CHIPS and Science Act, but it hasn't been able to revive its fortunes while falling behind on construction projects spawned by the programme. The company has received about $2.2 billion of the $7.8 billion pledged under the incentives programme - money that Lutnick derided as a "giveaway" that would better serve US taxpayers if it's turned into Intel stock. "We think America should get the benefit of the bargain," Lutnick told CNBC. "It's obvious that it's the right move to make." Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Swiggy, Tencent backer Prosus gets Rajinikanth fan to script India AI play India's F&O boom puts spotlight on retail protection through education Can new shipping laws bury the ghost of British legacy? As big fat Indian wedding slims to budget, Manyavar loses lustre Stock Radar: Bajaj Auto showing signs of reversal after falling over 30% from highs; medium term should 'buy the dip' F&O Radar | Deploy Bull Call Ladder in JSW Steel stock to benefit from bullish outlook Time for risk-takers to come out of hibernation? 5 mid-cap stocks from different sectors with an upside potential of up to 27% Buy, Sell or Hold: Motilal Oswal initiates coverage on JSW Cement; Emkay Global sees over 30% upside in Gravita India
Economic Times
25 minutes ago
- Economic Times
Cracks in the AI hype? Warning signs suggest the Bubble could soon explode
In March 2000, Barron's asked, 'When will the internet bubble burst?' warning the pop could happen before year-end. On that same day, a top tech company saw its share price drop 60pc, and many others collapsed, wiping out trillions. Now, some Wall Street experts worry the same 'unpleasant popping sound' may hit the AI boom. On Tuesday, tech stocks fell sharply after a report from MIT said most AI investments give 'zero return' for businesses. MIT academics wrote: 'Despite $30-40bn in enterprise investment into Generative AI, 95pc of organisations are getting zero return'. Nvidia shares dropped 3.5pc and Palantir fell 9pc after the report. MIT's findings could be the pin that pops the tech stock bubble, which has increased US stock values by trillions. Since ChatGPT's launch in 2022, Silicon Valley has claimed AI chatbots will transform the economy, promising cost savings and productivity gains. MIT's report suggests the AI revolution has stalled, despite big investments, as reported by The Telegraph. MIT surveyed 150 business leaders and 350 employees, finding only 5pc of AI pilots generate millions in value; the rest show no measurable profit impact. Marko Kolanovic, former JP Morgan head of research, commented: 'Sounds about right for a bubble'. MIT found half of AI projects fail, 80pc of companies explored AI, but only 40pc actually deployed it. Only 20pc of enterprise-grade AI systems reached the pilot stage and just 5pc reached production. ALSO READ: Google Pixel 10 series and Pixel 10 Pro fold launched with AI features and new designs Many employees prefer using consumer AI products like ChatGPT on their own rather than corporate AI tools. The report emphasized: 'AI is already transforming work, just not through official channels'. Despite benefiting from AI, OpenAI CEO Sam Altman warned investors: 'Are investors overexcited? My opinion is yes… some people stand to lose a phenomenal amount of money'. Investors worry about SoftBank, which invested billions in OpenAI; its shares fell 7pc on Tuesday. OpenAI recently launched ChatGPT-5, which underwhelmed users; improvements were seen as small or incremental. Morgan Stanley predicts $3tn will be spent on data centres over three years, mostly fueled by debt, to support AI growth, as stated by The Telegraph. Morgan Stanley also projects AI could add $16tn to the S&P 500 through 40pc salary savings, though MIT's report suggests this may be unrealistic. Meta announced a reorganization of its AI division, including staff reductions, showing even big AI believers are cautious. Mark Zuckerberg has spent hundreds of millions to hire AI engineers at Meta, as per the New York Times the sell-off, the market hasn't collapsed completely; some analysts see it as just a speed bump. Dan Ives, tech analyst at Wedbush Securities, said skeptics of the tech rally will be proven wrong again. Nvidia will report results next week, potentially showing the true state of AI investments in major companies. Ives believes the tech bull cycle will continue for another 2-3 years, but many are still listening for the ominous pop, as mentioned by The Telegraph. Q1. Is the AI boom at risk of a market crash? Yes, experts warn that most AI investments show zero return, which could trigger a tech stock bubble burst. Q2. Are big companies slowing down their AI projects? Yes, many firms like Meta and SoftBank are cautious, with AI projects failing or being scaled back.
Time of India
41 minutes ago
- Time of India
Cracks in the AI hype? Warning signs suggest the Bubble could soon explode
In March 2000, Barron's asked, 'When will the internet bubble burst?' warning the pop could happen before year-end. On that same day, a top tech company saw its share price drop 60pc, and many others collapsed, wiping out trillions. Now, some Wall Street experts worry the same 'unpleasant popping sound' may hit the AI boom . On Tuesday, tech stocks fell sharply after a report from MIT said most AI investments give 'zero return' for businesses. MIT academics wrote: 'Despite $30-40bn in enterprise investment into Generative AI , 95pc of organisations are getting zero return'. Nvidia shares dropped 3.5pc and Palantir fell 9pc after the report. AI investments struggle MIT's findings could be the pin that pops the tech stock bubble, which has increased US stock values by trillions. Since ChatGPT's launch in 2022, Silicon Valley has claimed AI chatbots will transform the economy, promising cost savings and productivity gains. MIT's report suggests the AI revolution has stalled, despite big investments, as reported by The Telegraph. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 15 Most Beautiful Women in the World Undo MIT surveyed 150 business leaders and 350 employees, finding only 5pc of AI pilots generate millions in value; the rest show no measurable profit impact. Marko Kolanovic, former JP Morgan head of research, commented: 'Sounds about right for a bubble'. MIT found half of AI projects fail, 80pc of companies explored AI, but only 40pc actually deployed it. Only 20pc of enterprise-grade AI systems reached the pilot stage and just 5pc reached production. ALSO READ: Google Pixel 10 series and Pixel 10 Pro fold launched with AI features and new designs Live Events Many employees prefer using consumer AI products like ChatGPT on their own rather than corporate AI tools. The report emphasized: 'AI is already transforming work, just not through official channels'. Despite benefiting from AI, OpenAI CEO Sam Altman warned investors: 'Are investors overexcited? My opinion is yes… some people stand to lose a phenomenal amount of money'. Big companies cautious Investors worry about SoftBank, which invested billions in OpenAI; its shares fell 7pc on Tuesday. OpenAI recently launched ChatGPT-5, which underwhelmed users; improvements were seen as small or incremental. Morgan Stanley predicts $3tn will be spent on data centres over three years, mostly fueled by debt, to support AI growth, as stated by The Telegraph. Morgan Stanley also projects AI could add $16tn to the S&P 500 through 40pc salary savings, though MIT's report suggests this may be unrealistic. Meta announced a reorganization of its AI division, including staff reductions, showing even big AI believers are cautious. Mark Zuckerberg has spent hundreds of millions to hire AI engineers at Meta, as per the New York Times report. Despite the sell-off, the market hasn't collapsed completely; some analysts see it as just a speed bump. Dan Ives, tech analyst at Wedbush Securities, said skeptics of the tech rally will be proven wrong again. Nvidia will report results next week, potentially showing the true state of AI investments in major companies. Ives believes the tech bull cycle will continue for another 2-3 years, but many are still listening for the ominous pop, as mentioned by The Telegraph. FAQs Q1. Is the AI boom at risk of a market crash? Yes, experts warn that most AI investments show zero return, which could trigger a tech stock bubble burst. Q2. Are big companies slowing down their AI projects? Yes, many firms like Meta and SoftBank are cautious, with AI projects failing or being scaled back.
