The KOSPI index fell more than 1% in early trading, dropping below the 5,600 mark, despite a significant surge in the U.S. stock market. While the Democratic Party's decisive victory in the U.S. midterm elections eased political uncertainty, concerns over stricter regulations on artificial intelligence (AI) data centers dampened investor sentiment, particularly in the semiconductor sector.
As of 9:10 a.m. on November 5, the KOSPI was trading at 5,576.33, down 107.47 points (1.89%) from the previous trading day.
In the stock market, foreign investors led the decline by selling a net 134.5 billion won, while individual and institutional investors bought a net 108.4 billion won and 24.3 billion won, respectively.
Among the top market capitalization stocks, large-cap semiconductor shares showed significant weakness. Samsung Electronics was trading at 210,250 won, down 3.56%, while SK Hynix fell 6.16% to 1,310,000 won. Other stocks, including Samsung Electronics preferred shares (-3.03%), SK Square (-6.45%), and Samsung Electro-Mechanics (-7.71%), also experienced declines.
In contrast, Hyundai Motor (up 6.53%), KB Financial (up 5.08%), and Samsung Biologics (up 4.68%) showed strength, while LG Energy Solution fell 1.69%.
The KOSDAQ index also faced weakness, trading at 707.12, down 7.83 points (1.10%) compared to the previous day.
In the KOSDAQ market, individual and foreign investors sold a net 9.2 billion won and 6.5 billion won, respectively, while institutions bought a net 16.1 billion won.
Among the top KOSDAQ stocks, Alteogen (up 9.80%), HLB (up 3.58%), and Samchundang Pharm (up 5.23%) saw gains, while EcoPro BM (-2.37%), JUSUNG Engineering (-8.02%), Simtech (-12.20%), and IOTech (-10.49%) faced declines.
Overnight, U.S. stocks rose sharply, buoyed by reduced political uncertainty following the midterm elections and a significant drop in international oil prices. The Dow Jones Industrial Average climbed 3.03%, the S&P 500 rose 1.58%, and the Nasdaq Composite increased by 1.44%.
However, concerns over new regulations for AI data center construction weighed on semiconductor stocks. Nvidia fell 3.2%, and Micron dropped 7.0%. In contrast, major tech companies like Amazon (up 6.1%) and Microsoft (up 6.7%) showed strength amid expectations of reduced investment burdens in AI facilities.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Despite the easing of uncertainty from the U.S. midterm elections and expectations for policy changes, concerns over delays in new data center construction persist. This will likely lead to a differentiated market between AI-related stocks, such as semiconductors and power equipment, and non-AI sectors like secondary batteries and solar energy. The potential for data center regulations to structurally reduce the AI investment cycle is low, so the likelihood of repeated sharp declines like those seen recently is also low."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.