Korean stocks fell more than 3% in early trading, dragged down by Wall Street tech declines and Samsung strike concerns

Odaily Planet Daily reported that South Korean stocks opened sharply lower on Wednesday, following the overnight decline on Wall Street, due to the slump in major US technology stocks, US inflation coming in higher than expected, and uncertainty over the US-Iran peace talks. The Korea Composite Stock Price Index (KOSPI) opened 1.7% lower before extending losses to more than 3%. The index ended a five-day winning streak on Tuesday, after briefly rising to near the 8,000-point mark during the session, prompting investors to lock in profits.

The overnight sell-off in Wall Street tech stocks further dampened investor risk appetite, reigniting concerns about the sustainability of massive investments in the artificial intelligence sector.

Investors are also worried about rising US inflation in April, primarily driven by higher oil prices due to the US-Israel war against Iran.

The market is also closely watching whether the Samsung Electronics union will proceed with a full-scale strike, after the union and company management failed to narrow their differences over performance-based bonus issues during a government-led all-night mediation session. (Jin Shi)