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Daily Briefing (English)

2026-11-03 · KOSPI & Nasdaq
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Headline

Domestic Bourses Plunge 3–4% as AI Profitability Doubts Resurface and Big Tech Faces Heavy Selling

Key Takeaways
  • Renewed funding and profitability concerns surrounding U.S. Big Tech's expanding AI infrastructure capex weighed on the Nasdaq (-1.07%), spilling over into heavy downward pressure on domestic semiconductor bellwethers.
  • Driven by combined net selling of over 2 trillion won from foreign and institutional investors, the KOSPI tumbled 3.59% to finish at 5,648.79, while the KOSDAQ sank 4.08% to 704.39.
  • The USD/KRW exchange rate edged slightly lower (-0.38 won) to close at 1,340.90 despite risk-off sentiment, though external uncertainties such as caution ahead of the U.S. midterm elections persist.
Highlights

KOSPI

Large-cap semiconductor names including Samsung Electronics (-4.15%) and SK Hynix (-5.03%) slumped across the board, leading the index lower as aggressive selling from foreign and institutional players erased most of the previous session's rebound.

Highlights

KOSDAQ

Selling spilled across semiconductor equipment, materials, and parts plays (Jusung Engineering, EO Technics, etc.) as well as secondary battery names (EcoPro BM, etc.), triggering a sharp correction that tested support around the 700 level.

Highlights

NASDAQ

Growing skepticism over large-scale corporate bond issuances by Big Tech and the pace of return on AI infrastructure investments continues to fuel profit-taking and downward pressure across tech equities.

Today's Watchlist
  • Potential escalation in global financial market volatility depending on U.S. midterm election vote-counting and policy uncertainties.
  • Scrutiny over Big Tech free cash flow (FCF) generation and the justification of sustained AI-related capex.
  • Whether the KOSPI and KOSDAQ can stabilize above 5,600 and 700 respectively, and the timing of foreign flows shifting back to net buying.
Risk Note

If concerns over delayed monetization relative to AI infrastructure outlays persist, elevated volatility in semiconductor and tech shares could continue in the near term; caution is warranted regarding sharp index swings driven by external political schedules.

Last updated: 2026-11-03 16:00:31