Stocks decline on US-China trade tensions
Korea’s Kospi index lost 16.73 points, or 0.77 percent, to close at 2,145.12. Trading volume was low, at 255.81 million shares worth 4.61 trillion won ($4.06 billion).
The benchmark index started weak due to increasing concerns that U.S.-China trade tensions could have a negative impact on economic figures for China, Korea’s top export market.
“Traders remain on the edge as they await major economic data from China, as well as the U.S. Federal Reserve and its meeting minutes this week, amid continuing worries over the trade tension between Washington and Beijing,” said Kim Jung-won, an analyst at HMC Investment Securities.
Institutional investors dumped a net 327.05 billion won worth of local stocks, while foreign investors picked up a net 22.75 billion won and retail investors bought a net 298.99 billion won.
Market heavyweights backtracked across the board, following Kospi’s rebound last Friday after eight consecutive sessions of losses.
Tech shares were down. Samsung Electronics edged down 0.45 percent to 43,800 won, and SK Hynix, a major chipmaker, shed 2.90 percent.
Pharmaceutical companies also ended in negative terrain. Celltrion dropped 4.74 percent to 261,500 won, and Samsung’s bio-pharmaceutical unit Samsung BioLogics declined 2.0 percent to 465,000 won. Auto shares slumped on concerns over weak earnings in the third quarter.
Industry leader Hyundai Motor fell 1.73 percent to 113,500 won, and its sister company, Kia Motors, tumbled 6.47 percent to 31,100 won.
Naver, the nation’s top portal operator, dipped 4.23 percent, as it was expected to post downbeat third-quarter earnings.
LG Chem, the nation’s leading chemical firm, rose 2.85 percent to 324,500 won on an upbeat outlook on its lithium-ion battery business.
The secondary Kosdaq index also declined, falling 12.63 points, or 1.73 percent, to close at 718.87. The index was dragged down by the selling of pharmaceutical shares.
The Korean won closed at 1,134.30 won against the U.S. dollar, up 2.90 won. Bond prices, which move inversely to yields, ended mixed. The yield on three-year bonds was up 0.1 basis points at 2.05 percent, and the return on 10-year bonds was down 1.9 basis points to 2.38 percent.
BY CHAE YUN-HWAN, YONHAP [chae.yunhwan@joongang.co.kr]
with the Korea JoongAng Daily
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