Kospi retreats as U.S.-China tensions hit tech sector

Finance

Published: 18 Jul. 2024, 17:24 Updated: 18 Jul. 2024, 18:29

Kospi retreats as U.S.-China tensions hit tech sector

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,824.35 points on Thursday, down 0.67 percent, or 18.94 points, from the previous trading session. [NEWS1]

Shares retreated Thursday, led by tech stocks, over concerns that the United States could tighten its chip sales to China. The local currency fell in value against the dollar.

The Kospi shed 18.94 points, or 0.67 percent, to close at 2,824.35.

Trade volume was slightly heavy at 632.9 million shares worth 15.1 trillion won ($10.9 billion), with losers outnumbering winners 602 to 275.

Foreign investors dumped local shares worth 381 billion won while retail investors and institutions bought 417 billion won worth of shares combined.

Overnight, Wall Street underwent stagnant trading due to concerns of potentially worsening trade tensions between the United States and China, with chip shares taking a heavy beating. The S&P 500 and Nasdaq composite dropped 1.3 percent and 2.6 percent, respectively, but the Dow Jones Industrial Average rose 0.6 percent.

“The domestic stock market continued to show a downward trend due to the sharp decline in U.S. semiconductor stocks and adverse factors from policy uncertainties in the U.S.,” said Han Ji-young, an analyst at Kiwoom Securities.

The Seoul stock market lost ground overall led by chip and tech losses. SK hynix fell 3.63 percent to 212,500 won, and LG Electronics lost 1.07 percent to finish at 110,900 won.

Samsung Electronics, however, managed to rise 0.23 percent to 86,900 won in late trading, recouping losses from earlier in the session.

Battery and automotive shares took a beating. LG Energy Solution went down 0.45 percent to 335,000 won and Samsung SDI dropped 0.28 percent to 355,000 won. Hyundai Motor slid 2.98 percent to 260,500 won and Kia slipped 0.91 percent to 119,900 won.

Bio-related stocks also retreated, with Samsung Biologics falling 0.12 percent to 850,000 won and Celltrion falling 2.39 percent to 187,900 won.

The local currency was trading at 1,381.7 won against the greenback as of 3:30 p.m., up 0.2 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 1.2 basis points to 3.061 percent, and the return on the benchmark U.S. 10-year benchmark bonds fell 0.2 basis points to 4.158 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]