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South Korean shares log 7-month closing low as chipmakers slump on AI worries

By Reuters News

SEOUL, Nov 5 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares slumped more than 5% to a seven-month closing low on Thursday, as chipmakers tracked overnight losses in US tech stocks on worries about a slowdown in AI investment following a Democratic win in the midterm elections.

** The benchmark KOSPI .KS11 closed down 300 points, or 5.28%, at 5,383.80, its lowest closing level since April 3.

** During the session, the index triggered a "sidecar" trading curb and fell as much as 6.1%.

** Wall Street closed sharply higher on Wednesday as the midterm results victory eased political uncertainty and boosted risk appetite, though data centre shares fell on fears of tighter AI regulation. The Philadelphia Semiconductor Index .SOX dropped 3.1%. .N

** South Korea will closely monitor changes in AI-related policies and regulations in the US, the Finance Ministry said.

** Chipmaker Samsung Electronics 005930.KS fell 7.57% and peer SK Hynix 000660.KS lost 9.46%.

** Battery maker LG Energy Solution 373220.KS slid 2.54%, while peers Samsung SDI 006400.KS and SK Innovation 096770.KS dropped 6.61% and 7.68%, respectively, after a rally on Wednesday on hopes of stronger electric-vehicle demand on Democrats' climate-friendly policies.

** Battery materials makers LG Chem 051910.KS and POSCO Holdings 005490.KS also declined.

** Of the total 912 traded issues, 344 shares advanced, while 537 declined.

** Foreigners were net sellers of shares worth 3.4 trillion won ($2.53 billion).

** The won was quoted at 1,342.1 per dollar on the onshore settlement platform , 0.08% lower than its previous close at 1,341.0.

** The most liquid three-year Korean treasury bond yield fell by 3.3 basis points to 3.677%, while the benchmark 10-year yield fell by 7.1 basis points to 3.897%.

($1 = 1,342.4000 won)

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