Kospi opens flat as U.S. recession fears ease

Finance

Kospi opens flat as U.S. recession fears ease

Published: 19 Aug. 2024, 10:19

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

Shares opened nearly flat on Monday as investors cashed in profits following recent gains amid the eased fears of a potential recession in the United States.

The Kospi edged down 0.58 points, or 0.02 percent, to 2,696.65 in the first 15 minutes of trading.

Stocks tumbled by the most on record to a near nine-month low on Aug. 5 amid intensifying fears over a U.S. economic slowdown, crashing 8.77 percent to close at 2,441.55.

Seoul shares have since gradually gained momentum as investors returned to bargain hunting, buoyed by key U.S. economic data, including the consumer price index, which hinted at a rate cut by the Federal Reserve.

Samsung Electronics moved down 2 percent, and SK hynix lost 1.75 percent.

Carmaker Hyundai Motor, on the other hand, added 1.57 percent, and its sister company Kia added 0.28 percent.

Financial firms traded mostly higher as well, with KB Financial moving up 2.14 percent and Shinhan Financial Group climbing 1.8 percent. Samsung Life Insurance increased 2.95 percent.

The local currency was trading at 1,349.2 won against the U.S. dollar, down 8.4 from the previous session's close.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]