SEOUL, December 16 (AJP) - Asian stock markets closed lower on Tuesday as skepticism over artificial intelligence valuations spread from Wall Street and investors braced for key interest rate decisions from the Bank of Japan (BOJ) and the European Central Bank (ECB).
South Korean equities posted the steepest losses in the region.
The benchmark KOSPI index tumbled 2.24 percent to 3,999.13, while the tech-heavy KOSDAQ fell 2.42 percent to 916.11. Foreign investors were net sellers of 1.4 trillion won ($95 million) across the two markets.
The Korean won strengthened for a second session, ending at 1,475.4 per dollar, up 4.6 won from the previous close. Government bond yields edged lower, with the three-year yield down 0.1 basis point to 2.999 percent and the 10-year yield falling 1.2 basis points to 3.313 percent.
Losses were broad-based across large-cap stocks. Samsung Electronics, which had recently drawn buying interest ahead of its year-end dividend, fell 1.91 percent to 102,800 won. Chipmaker SK hynix dropped 4.33 percent to 530,000 won, marking one of its worst weekly performances this year.
Shares in Hyundai Motor Group companies also declined. Hyundai Engineering & Construction slid 4.92 percent to 69,500 won following negative news related to business partners. Hyundai Motor fell 2.56 percent to 286,000 won, weighed down by concerns over its autonomous driving competitiveness and the fallout from its affiliate.
Secondary battery-related stocks led the selloff after reports that SK On and Ford plan to dissolve their joint venture, BlueOval SK, amid a slowdown in electric vehicle demand. LG Energy Solution plunged 5.54 percent to 418,000 won, while Samsung SDI lost 3.14 percent to 293,500 won. Cathode material maker Posco Future M tumbled 7.49 percent to 210,000 won, and SK Innovation fell 2.75 percent to 109,800 won.
Biotechnology stocks provided rare pockets of strength on expectations that earnings may exceed forecasts. Samsung Biologics rose 1.02 percent to 1,790,000 won, while Samsung Episholding added 0.42 percent to 712,000 won.
In the KOSDAQ market, battery-related names were again among the biggest laggards, with EcoPro sliding 8.08 percent to 101,300 won. Robot-related stocks also weakened, as Rainbow Robotics fell 3.87 percent to 460,000 won. Biotech firm Aimed Bio gained 2.7 percent to 72,400 won.
Elsewhere in Asia, Japan’s Nikkei 225 fell 1.56 percent to 49,383.29. Battery and robotics stocks underperformed, with Panasonic Holdings down 4.67 percent to 2,054 yen ($13.26) and Fanuc sliding 6.04 percent to 5,708 yen.
Taiwan’s TAIEX dropped 1.19 percent to 27,536.66. Chip heavyweight TSMC declined 1.03 percent to 1,435 Taiwan dollars ($45.59), while Hon Hai Precision Industry (Foxconn) fell 1.58 percent to 218 Taiwan dollars. MediaTek closed flat, helping limit broader losses.
Mainland Chinese shares also ended lower. The Shanghai Composite Index fell 1.11 percent to 3,824.81, with investors wary of a potential unwind in yen carry trades ahead of the BOJ’s policy announcement later this month.
The Shenzhen Component dropped 1.51 percent to 12,914.67, while Hong Kong’s Hang Seng Index was down 1.7 percent at 25,195 as of late afternoon.
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