US recession fears send Kospi plunging by record high of nearly 9%


South Korean stocks experienced a historic plunge on Monday, reaching a near nine-month low due to escalating concerns about a potential US economic slowdown. This led to significant selling pressure on major tech companies, contributing to the benchmark Korea Composite Stock Price Index (Kospi) plummeting by a record 8.77 percent to close at 2,441.55. The heavy trading volume saw a sharp imbalance between decliners and gainers, with foreign investors leading the sell-off by offloading a net 1.5 trillion won worth of stocks. The market also witnessed its first circuit breaker in four years, halting trading for 20 minutes as the Kospi fell more than 8 percent. The downturn was triggered by disappointing US employment data and the lackluster performance of big tech firms, causing a broad decline in Seoul's stock market. Notable companies such as Samsung Electronics, SK hynix, LG Energy Solution, and Hyundai Motor saw substantial drops in their stock prices. Additionally, the Korean won weakened against the US dollar, trading at 1,374.8 won as of 3:30 p.m., down 3.6 won from the previous session.


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