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Stocks dip amid growing concerns for U.S. economy

Published: 07 Dec. 2023, 16:49

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets open on Thursday. [YONHAP]

Shares ended lower Thursday as investors were concerned the U.S. economy may be losing steam. The local currency sharply fell in value against the dollar.

The Kospi lost 3.31 points, or 0.13 percent, to close at 2,492.07.

Trade volume was moderate at 440.6 million shares worth 8.03 trillion won ($6.06 billion), with losers outnumbering gainers 525 to 354.

Institutions dumped a combined 204.8 billion won worth of shares, while individual and foreign investors bought shares worth 151.2 billion won and 39.8 billion won, respectively.

Overnight, all three major U.S. indexes lost ground as weaker-than-expected jobs data fueled concerns over a possible slowdown of the U.S. economy.

A decline in tech heavyweights also weighed on the U.S. market, with AI chip leader Nvidia sinking 2.3 percent and Microsoft and Amazon down more than 1 percent.

"Investment sentiment in Asian markets remained weak as hopes for a Federal Reserve rate cut are overshadowed by concerns over economic slowdown amid weak employment," said Kim Seok-hwan, an analyst at Mirae Asset Securities.

In Seoul, big-cap shares traded mixed.

Samsung Electronics lost 0.28 percent to 71,500 won, while SK hynix was flat at 125,600 won.

Hyundai Motor dropped 0.16 percent to 182,600 won, while Kia gained 0.71 percent to 85,100 won.

Posco Holdings retreated 1 percent to 447,000 won and LG Chem pulled back 0.53 percent to 468,500 won.

LG Electronics plunged 4.7 percent to 95,300 won.

Battery shares were bullish. LG Energy Solution added 0.47 percent to 426,500 won and Samsung SDI jumped 2.31 percent to 443,500 won. Posco Future M shot up 5.02 percent to 334,500 won and Ecopro Materials soared 4.35 percent to 127,000 won.

The state-run Korea Electric Power Corporation climbed 2.56 percent to 19,650 won.

The local currency ended at 1,325.30 won against the dollar, up 12.20 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 5.8 points to 3.51 percent, and the return on the benchmark U.S. 10-year government bonds fell 6.7 points to 4.10 percent.

BY KIM JU-YEON, YONHAP [[email protected]]