South Korean shares fall 2% as AI selloff weighs on global markets - The

South Korean shares fell on Friday, heading for a second straight weekly decline as a selloff in AI-related stocks drove investors toward safer assets globally. The won strengthened against the dollar, while government bond yields declined, Reuters reported.The benchmark KOSPI fell 2.14%, or 118.59 points, to 5,415.18 as of 01:38 GMT, according to Reuters market data.Read more: Global Market Today: Asian stocks slide after US tech routGlobal market sentiment weakened after the tech-heavy Nasdaq dropped more than 1% on Thursday.

Reuters reported that growth stocks came under pressure after earnings from US megacap companies Tesla and Meta failed to ease investor concerns over artificial intelligence, while a recovery in oil prices added to market uncertainty.Chipmakers led the declines in Seoul, with Samsung Electronics falling 2.80% and SK Hynix losing 0.57%. Battery maker LG Energy Solution slipped 1.79%.Read more: Dragon enters bear cave with $2.4 trillion lost since May peakAutomakers also faced selling pressure, with Hyundai Motor falling 3.81% and Kia Corp declining 2.85%.

Steelmaker POSCO Holdings shed 3.50%, while Samsung BioLogics gained 6.47%, bucking the broader market trend.Market breadth remained firmly negative, with 793 stocks declining against 95 advancing among 912 traded issues. Foreign investors were net sellers of South Korean shares worth 589.3 billion won, Reuters data showed.The South Korean won strengthened onshore to 1,322.6 per dollar, up 0.29% from its previous close of 1,326.5.

In offshore trading, the currency rose 0.2% to 1,322.1 per dollar, while its one-month non-deliverable forward contract stood at 1,320.8, according to Reuters.Despite the latest weakness, the KOSPI has gained 28.50% so far this year, while the won has appreciated 8.8% against the dollar. Can this benefit Dalal Street?In the bond market, December futures on three-year Treasury bonds rose 0.21 points to 103.29.

The yield on the most liquid three-year Korean Treasury bond fell 6.6 basis points to 3.774%, while the benchmark 10-year yield declined 7.1 basis points to 4.073%, Reuters reported.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)