Seoul, April 9 (IANS) South Korean stocks fell by nearly 2 percent to a 17-month low on Wednesday as the Donald Trump administration’s sweeping tariffs stoked fears of an intensifying trade war between the United States and China. The local currency fell sharply against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 40.53 points, or 1.74 percent, to close at 2,293.70. It marked the lowest closing since Oct. 31, 2023, when it finished at 2,277.99, reports Yonhap news agency.
Trade volume was moderate at 692.55 million shares worth 9.17 trillion won ($6.18 billion), with losers outnumbering winners 758 to 145.
Foreigners and institutions sold a net 1.01 trillion won and 70.42 billion won worth of stocks, respectively, while individuals purchased a net 939.56 billion won.
The U.S.’ reciprocal tariffs, including 25 percent duties for South Korea, went into effect earlier in the day, which came on the heels of a minimum 10 percent baseline tariff that came into force on Saturday.
Trump also warned of additional 50 percent tariffs on China if Beijing does not withdraw its retaliatory 34 percent tariffs against his country, stoking fears of an escalating trade war between the world’s two largest economies and its impact on the trade-dependent South Korean economy.
“The index could fall further as China’s strong retaliatory measures are expected,” Park Hee-chan, a researcher at Mirae Asset Securities, said. Losses were wide and deep across the board.
Top-cap Samsung Electronics sank 0.93 percent to 53,000 won, and its chipmaking rival SK hynix tumbled 2.65 percent to 165,000 won.
Major bio firm Samsung Biologics lost 1.2 percent to 992,000 won, and Celltrion nosedived 5.27 percent to 154,500 won.
Leading battery maker LG Energy Solution declined 1.26 percent to 314,000 won, and No. 1 steelmaker POSCO Holdings dipped 0.8 percent to 249,500 won.
Top automaker Hyundai Motor slumped 0.67 percent to 178,000 won, and its sister affiliate Kia went down 0.59 percent to 83,800 won.
Leading defence equipment manufacturer Hanwha Aerospace shed 1.0 percent to 691,000 won, and top portal operator Naver decreased 1.5 percent to 176,900 won.
The local currency was quoted at 1,484.1 won against the greenback at 3:30 p.m., down 10.9 won from the previous session, marking the lowest level since March 2009.
Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys rose 2.1 basis points to 2.434 percent, while the return on the benchmark five-year government bonds climbed 3.2 basis points to end at 2.540 percent.
–IANS
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