KOSPI Plunges 5.5% Amid AI Spending Doubts, Interest Rate Concerns

• South Korean KOSPI index experienced its steepest single-day decline since November 21, falling 5.5%.
• Heavyweight chipmakers Samsung Electronics and SK Hynix both dropped over 4%, contributing significantly to the market's fall.
• Uncertainty regarding Kevin Warsh's potential nomination as the next US Federal Reserve Chair and his policy stance added to market jitters.
• Nvidia CEO Jensen Huang's comments questioning the $100 billion OpenAI investment fueled concerns about future AI capital spending.
• The market sell-off was also driven by profit-taking in AI-linked stocks and broader regional weakness, with the MSCI Asia Pacific Index down 1.7%.

Why It Matters: KOSPI saw a sharp decline due to AI spending doubts, interest rate uncertainty, and profit-taking in tech stocks.