Economy
South Korea's KOSPI Index Drops 5% Amid Global AI Sector Sell-Off
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THE BRIEF
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South Korea's benchmark KOSPI index fell 5% on Tuesday, extending losses as investors pulled back from AI-linked and semiconductor stocks.
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The index has plunged 39% from its peak of 9,386 earlier this year to 5,493.24 following a global market sell-off wiping out over $1 trillion.
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Analysts attribute the severe downturn to higher-than-expected US inflation data reviving Federal Reserve rate hike bets alongside growing concerns over AI financing constraints.