South Korea’s benchmark Kospi index fell more than 4% on Thursday, extending a severe downturn that has battered the market for several consecutive sessions.
The decline was driven primarily by heavy losses in the technology sector, as selling pressure intensified across major chipmakers and hardware firms.
4% the day prior, signaling a broad-based loss of confidence in the region’s tech-heavy market.
The selloff reflects a deepening investor reassessment of artificial intelligence stocks, with market participants growing increasingly cautious about valuation levels and near-term growth prospects.
This marks a continuation of the sharp downturn that saw the index drop 4.6% on Wednesday and 5.4% the day prior, signaling a broad-based loss of confidence in the region’s tech-heavy market.
The persistent decline highlights the vulnerability of markets heavily concentrated in technology and AI-related equities when sentiment shifts.
Investors are now weighing whether the recent rally in AI stocks has priced in too much optimism, leading to a rapid repricing of risk.