Seoul stocks swing as US midterm results favor Democrats
South Korean shares rose, then fell, as the US midterm vote moved toward a Democratic win. Investors worried about tighter artificial intelligence rules, and the won weakened slightly.
South Korean stocks started sharply higher on Wednesday, led by tech shares, while investors waited for US midterm results. The Korea Composite Stock Price Index, the main benchmark, rose 2.2% to 5,773 at 9:15 a.m. The day before, the Nasdaq gained 0.83% on strong chip shares, and the S&P 500 climbed 0.36%.
Early strength faded. Around 10:11 a.m., the index began sliding as first results suggested Democrats were winning both chambers of Congress. Its low came at 12:45 p.m., at 5,421.72. It ended the session at 5,683.80, a gain of 35.01 points, or 0.62%.
On Thursday the market opened lower after the Democratic Party won the midterms. The index fell 1.82% to 5,580.09 at the opening bell. Traders linked the drop to concerns over tighter artificial intelligence regulations.
Across Asia, the result raised questions about relations with Washington. Observers expect the Trump administration to press Asian allies for more US investment and a larger share of defense costs. A backlash over living costs could also encourage countries to resist the president's trade policies.
Background
Voting in the US midterm elections began on Tuesday.
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