South Korea’s Kospi retreats from record high to drop over 6% as heavyweight tech names sell-off
Asia-Pacific markets fell as investors tracked the second day of high-stakes talks between Donald Trump and Xi Jinping.
ShanonG
China's President Xi Jinping (R) and US President Donald Trump visit the Temple of Heaven in Beijing on May 14, 2026. Xi warned Trump that the issue of Taiwan could push their two countries into "conflict" if mishandled, a stark opening salvo as a superpower summit set to tackle numerous thorny issues began in Beijing on May 14. (Photo by Brendan SMIALOWSKI / POOL / AFP via Getty Images)
Brendan Smialowski | Afp | Getty Images
South Korea's benchmark Kospi index gave up gains to fall more than 6% Friday, retreating from a fresh record high, weighed down by heavyweight tech stocks amid a broader decline in Asia-Pacific markets.
The Kospi index closed at 7,493.18, having breached 8,000 earlier in the session. The small-cap Kosdaq fell more than 5% to end at 1,129.82.
The decline follows Kospi's record-breaking streak, which has raised concerns over concentration risks, particularly in artificial intelligence stocks. Samsung Electronics and SK Hynix together make up a record 42.2% of the Kospi, according to Manulife Investment Management.
Shares of Samsung Electronics fell 8.6% after its labor union said it would proceed with its planned 18-day strike from May 21 involving more than 45,00 workers, even though the company has proposed resuming wage talks without preconditions. The union said it was willing to return to negotiations after June 7. SK Hynix shares declined 7.6%.
Other Asia markets also fell as investors tracked the second day of high-stakes talks between U.S. President Donald Trump and Chinese President Xi Jinping. Trump on Friday left Beijing after the 2-day summit, also attended by a delegation of American business leaders, including Tesla CEO Elon Musk and Nvidia chief Jensen Huang.
Japan's Nikkei 225 declined 2% to 61,409.29 and the Topix lost 0.39% to 3,863.97.
In Australia, the S&P/ASX 200 slid 0.11% to 8,630.8.
Hong Kong's Hang Seng index was down 1.6% as of its final hour of trading, while mainland China's CSI 300 fell 1.12% to 4,859.59.
Precious metals also saw a sell-off, with spot gold prices down 1.43% at $4,583.02 per ounce, while silver prices fell over 5% to $79.07 per ounce.
Xi warned Trump on Thursday that Washington and Beijing could face "clashes and even conflicts" if the sensitive issue of Taiwan independence is mishandled.
Failure to handle the matter "properly" could place "the entire relationship in great jeopardy," Xi was quoted as saying.
U.S. stock futures were little changed on Thursday night. Dow futures fell by 10 points, or 0.02%. S&P 500 futures dipped 0.02%, and Nasdaq 100 futures rose 0.06%.
Overnight in the U.S., the Dow Jones Industrial Average retook 50,000 after Cisco Systems reported strong earnings. The 30-stock index popped 370.26 points, or 0.75%, to end at 50,063.46.
The S&P 500 climbed 0.77% and closed at 7,501.24, while the Nasdaq Composite gained 0.88% to 26,635.22. Those two indexes scored fresh all-time intraday highs and record closes.
— CNBC's Justina Lee, Sean Conlon and Lisa Kailai Han contributed to this report
