Stocks decline for another day on recession worries, won climbs

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Stocks decline for another day on recession worries, won climbs

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,333.29 points on Tuesday, down 18.88 points, or 0.8 percent, from the previous trading day. [YONHAP]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,333.29 points on Tuesday, down 18.88 points, or 0.8 percent, from the previous trading day. [YONHAP]

 
Stocks ended lower Tuesday dragged down by investor concerns over a global recession and the Japanese central bank's yield curve policy change that heralds possible monetary tightening. The won sharply strengthened against the dollar.
 
The Kopsi fell 18.88 points, or 0.80 percent, to close at 2,333.29, extending its losing streak to a fourth session.
 
Trading volume was moderate at 353.63 million shares worth 5.2 trillion won ($4.02 billion), with decliners outstripping gainers 753 to 133.
 
Foreigners and institutions sold a combined 130 billion won worth of stock in net value, exceeding individual stock purchases, totaling 105 billion won.
 
Overnight, the Dow Jones Industrial Average retreated 0.49 percent, and the tech-heavy Nasdaq Composite lost 1.49 percent.
 
Last week, the Fed signaled its plans for additional interest rate hikes next year with the warning of an economic slowdown. Fed officials forecast rates would end next year in a range of 5 percent to 5.25 percent, a higher level than previously indicated.
 
The risk of higher interest rates continues to fuel investor concerns over a U.S. recession in 2023 and reduce the appetite for risky assets, analysts said.
 
"In today's session, the Bank of Japan's unexpected yield curve adjustment affected the market as well," You Myeong-gan, an analyst at Mirae Asset Financial Group, said.
 
Large-cap stocks were mixed across the board.
 
Samsung Electronics fell 1.5 percent to 58,600 won, SK hynix Inc. declined 0.9 percent to 78,300 won, and Hyundai Motor shed 1.3 percent to 157,000 won.
 
Among gainers, tiremaker Hankook Tire & Technology rose 0.3 percent to 33,350 won, cosmetics firm AmorePacific climbed 0.8 percent to 133,000 won, and battery maker LG Energy Solution was up 1.1 percent to 487,500 won.
 
The won closed at 1,289.60 won against the dollar, down 13.30 won from the previous session's close.
 
The Kosdaq fell 14.09 points, or 1.96 percent, to close at 703.13 points.  
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 14.2 basis points to 3.687 percent, and the yield on the benchmark 10-year government bonds increased 9.8 basis points to 3.585 percent.
 
 

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]
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