SEOUL, South Korea — South Korean stocks tumbled more than 4% on Tuesday, erasing the previous day's rebound as investors dumped semiconductor shares amid growing doubts about the payoff from massive spending on artificial intelligence and rising U.S. bond yields.

The benchmark Korea Composite Stock Price Index, or KOSPI, was down 247.83 points, or 4.30%, at 5,520.18 as of 1:51 p.m. local time. The index fell as much as 4.8% during the session, according to Bloomberg, making it the worst performer among major Asia-Pacific markets.

The slide wiped out Monday's gains, when the KOSPI staged a dramatic turnaround to close up 1.76% at 5,768.01 after opening more than 3% lower.

Chipmakers lead the decline

Semiconductor giants Samsung Electronics and SK Hynix, which together account for a large share of the KOSPI's value, led the sell-off.

SK Hynix plunged more than 7% at one point, falling to near its lowest level since April, while Samsung Electronics dropped more than 3%. Other heavyweights, including SK Square, Hyundai Motor, LG Energy Solution and Samsung SDI, also traded lower, and nearly every sector was in the red.

The renewed weakness extended a punishing stretch for the two chipmakers. Samsung and SK Hynix suffered their worst weekly........

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