K-Stocks Plunge Amid Global Inflation Fears and AI Doubts
Key Summary
South Korea's KOSPI index fell 7.28% to 5,571.27, extending a six-session losing streak, after US inflation data and AI doubts sparked market concerns, leading to a sharp decline in tech stocks and foreign investor selling. The drop leaves the index roughly 40% below its June 19 peak, despite remaining up 31.87% for 2026.
Market Analysis
The Korea Composite Stock Price Index (KOSPI) opened sharply lower on Thursday after hotter US inflation data and AI doubts pushed the market into a trading halt. US inflation, as measured by the Consumer Price Index (CPI), reached 3.7% in September, beating forecasts at 3.6%. Core inflation, which strips out food and energy, also beat forecasts at 2.6%. The KOSPI is now down -40% from its record high seen on June 19th.
Key Players
Samsung Electronics fell 6.03% and SK Hynix dropped 7.61% shortly after the open. Foreign investors sold a net 285.6 billion won early in the session.
Market Impact
The drop extends a six-session losing streak and leaves the index roughly 40% below its June 19 peak. Despite remaining up 31.87% for 2026, the KOSPI is under pressure from global inflation fears and AI skepticism. The Fed's October 28 decision will show whether those pressures ease.
Global Context
US stocks fell on Wednesday as inflation fears and AI skepticism weighed. The S&P 500 lost 1.11% and the Nasdaq Composite dropped 1.88%. Brent crude trades near $106 a barrel as Middle East tensions persist.