Seoul shares open lower on Tesla drop, recession woes

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Seoul shares open lower on Tesla drop, recession woes

Published: 21 Apr. 2023, 09:41 Updated: 21 Apr. 2023, 11:07

A screen in Hana Bank's trading room in central Seoul shows stock market close on Thursday. [YONHAP]

Stocks opened lower Friday, led by the decline in auto and battery shares following Tesla's sharp fall on Wall Street and U.S. data signaling a slowing economy.

The Kospi slid 12.97 points, or 0.51 percent, to 2,550.14 in the first 15 minutes of trading.

Wall Street ended lower Thursday after Tesla hinted at more price cuts to come and that it intends to do so even if it hurt its margins.

New claims for unemployment benefits in the United States rose to the highest level in more than two years, pointing to a weak labor market. Housing market data also fell by more than expected in March, adding to the view the economy is heading for a recession.

In Seoul, battery maker LG Energy Solution lost almost 1.4 percent, with its parent LG Chem falling 1.5 percent.

Samsung SDI declined 0.3 percent.

Hyundai Motor retreated 1.5 percent, and Kia dropped more than 1 percent.

Chip makers advanced, with market behemoth Samsung Electronics gaining 0.5 percent and SK hynix rising 0.7 percent.

The local currency was trading at 1,326.6 won against the dollar at around 9:15 a.m., up 3.8 won from Thursday's close.

Yonhap