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Kospi plunges 2.5% as U.S. economic data disappoints

Published: 02 Aug. 2024, 10:18

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Friday. [YONHAP]

Shares opened sharply lower Friday, tracking overnight losses on Wall Street, as disappointing U.S. economic data raised concerns over an economic slowdown despite the Fed's rate-cut signals.

The benchmark Kospi fell 68.48 points, or 2.47 percent, to 2,709.20 in the first 15 minutes of trading.

U.S. data showed unemployment claims hit the highest in almost a year and manufacturing shrank. The monthly employment data is set to be released Friday (U.S. time).

The Fed signaled this week it is on course to cut its benchmark rates in September if conditions meet its forecast.

In Seoul, most large-cap stocks declined.

Samsung Electronics fell 2.2 percent, SK hynix plunged 6.9 percent, Hyundai Motor shed 3.9 percent and LG Energy Solution was down 2.6 percent.

Among gainers, S-Oil rose 0.7 percent, HYBE climbed 1.6 percent, SM Entertainment gained 0.6 percent and KT&G was up 0.1 percent.

The local currency was trading at 1,373.95 won against the dollar, up 7.75 won from the previous session's close.

BY CHO YONG-JUN, YONHAP [[email protected]]