Kospi slides 1.21% over U.S. recession fears

Finance

Kospi slides 1.21% over U.S. recession fears

Published: 06 Sep. 2024, 16:45

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,544.28 points on Friday, down 31.22 points, or 1.21 percent, from the previous trading session. [NEWS1]

Shares closed sharply lower Friday, extending their losing streak to a fourth consecutive session amid concerns over a potential U.S. recession. The local currency rose against the dollar.

The benchmark Kospi lost 31.22 points, or 1.21 percent, to close at 2,544.28.

Trading volume was moderate at 368.9 million shares worth 8.5 trillion won ($6.4 billion), with losers outnumbering gainers 760 to 139.

Foreign investors extended their selling streak to a fourth session, dumping a net 265.3 billion won worth of local shares, while retail investors scooped up a net 170 billion won, remaining net buyers for a fifth consecutive session. Institutions purchased a net 83.7 billion won.

The index has been on a steady decline since Tuesday, when the U.S. reported a worse-than-expected manufacturing purchasing managers index, suggesting a potentially looming recession.

Kiwoom Securities analyst Han Ji-young said investors again took caution ahead of the U.S. jobs data, set to be released Friday.

"Concerns over the U.S. jobs data to be released overnight [in Korea], in addition to existing uncertainties, appear to have affected investor sentiments," Han said.

Most large caps finished in negative territory.

Samsung Electronics slipped 0.14 percent to 68,900 won, with chipmaker SK hynix plunging 1.88 percent to 156,400 won.

Pharmaceutical firm Celltrion surged 1.70 percent to 191,200 won, while chemicals company LG Chem tumbled 3.11 percent to 311,500 won.

Battery maker LG Energy Solution plummeted 3.66 percent to 395,000 won, while its local rival Samsung SDS tumbled 4.30 percent to 151,500 won.

Automaker Hyundai Motor dipped 0.66 percent to 227,500 won, with its affiliate Kia Motors shedding 0.7 percent to 100,000 won.

The local currency closed at 1,327.6 won against the dollar, down 8.3 won from the previous session.

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