dailyloe.com – South Korea’s benchmark Kospi declined more than 3% on Friday, retreating from a record high above 8,000. This drop occurred as broader Asia-Pacific markets experienced a downturn. Investors are monitoring high-stakes talks between U.S. President Donald Trump and Chinese President Xi Jinping.
The small-cap Kosdaq decreased by 2.61%. Meanwhile, Japan’s Nikkei 225 fell 1.1%, and the Topix index lost 0.13%. In Australia, the S&P/ASX 200 remained relatively unchanged.
Hong Kong’s Hang Seng index slid 0.89%, while the CSI 300 stayed flat. India’s Nifty 50 saw a slight increase of 0.2%. The Kospi had previously surpassed 7,000 for the first time on May 5, following Samsung Electronics reaching a record high with a market capitalization exceeding $1 trillion.
This record-breaking performance has raised concerns over concentration risks, particularly regarding artificial intelligence stocks. According to Manulife Investment Management, Samsung Electronics and SK Hynix accounted for a record 42.2% of the Kospi in May.
Earlier gains in South Korea’s market reflected optimism that the Trump-Xi discussions could mitigate trade and technology export tensions, especially for chipmakers and AI-related stocks. However, shares of Samsung Electronics fell over 5% after its labor union announced an impending 18-day strike involving more than 45,000 workers.
The union indicated it would consider resuming wage talks after June 7, despite the company’s proposal to negotiate without preconditions. Trump arrived in Beijing on Wednesday for the summit, accompanied by a delegation of American business leaders, including Tesla CEO Elon Musk and Nvidia chief Jensen Huang.
During the talks, Xi cautioned Trump about potential clashes over Taiwan independence. Xi stated that mishandling this sensitive issue could jeopardize the entire U.S.-China relationship.
On Thursday night, U.S. stock futures saw minimal changes. Dow futures dipped by 10 points, or 0.02%, while S&P 500 futures fell by 0.02%. Nasdaq 100 futures rose by 0.06%.
