Stocks snap rally on renewed U.S.-China tensions

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Stocks snap rally on renewed U.S.-China tensions

The screen in the dealing room of Hana Bank in Jung-district, central Seoul show the benchmark Kospi for Monday. [YONHAP]

The screen in the dealing room of Hana Bank in Jung-district, central Seoul show the benchmark Kospi for Monday. [YONHAP]

Stocks snapped a three-day rally to drop more than 2 percent Monday on renewed tensions between the United States and China over the novel coronavirus pandemic. The won sharply fell against the dollar.

The Kospi shed 52.19 points, or 2.68 percent, to close at 1,895.37.
Trading volume was high at 1.1 billion shares worth 10.1 trillion won ($8.2 billion), with losers outpacing gainers 549 to 312.
Investor sentiment was spooked by renewed concerns over tensions between the world's two largest economies weighing down investor sentiment. U.S. President Donald Trump indicated he may consider imposing new tariffs on China over its handling of the outbreak.
"With U.S. stocks moving down during the holiday period here, rising concerns over the U.S.-China trade feud dampened the local stock market," said Noh Dong-kil, a researcher at NH Securities.
Individual investors bought a net 1.69 trillion won worth of stocks. However, their buying binge was not enough to push up the index as foreigners sold a net 940 billion won, while institutional investors offloaded a net 804 billion won of local stocks.
Most large-cap stocks ended in negative terrain.
Samsung Electronics plunged 3 percent to 48,500 won, and chipmaker SK hynix shed 3.23 percent to 81,000 won.
Automaker Hyundai Motor lost 2.24 percent to 91,500 won, while auto parts maker Hyundai Mobis declined 1.45 percent to 169,500 won.
Chemical firm LG Chem tumbled 4.38 percent to 360,000 won, and steelmaker Posco dived 3.25 percent to 178,500 won. However, the web portal operator Naver advanced 0.76 percent to 199,000 won, and its rival Kakao also rose 1.36 percent to close at 186,500 won.
The won closed at 1,229.10 won against the dollar, up 10.9 won from the previous session's close.
The secondary Kosdaq was down 3.27 points, or 0.51 percent, to close at 641.91.
Bond prices, which move inversely to yields, closed higher. The yield on three-year bonds lost 2.8 basis points to 0.977 percent, and the return on the benchmark 10-year government bond lost 2.8 basis points to reach 0.61 percent.
The local financial market will close Tuesday for Children's Day.

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