Kospi and won plunge as U.S. tariffs spark fears of trade war

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Kospi and won plunge as U.S. tariffs spark fears of trade war

Hana Bank's trading room in central Seoul on Feb. 3 [NEWS1]

Hana Bank's trading room in central Seoul on Feb. 3 [NEWS1]

 
Korea’s stock market tumbled and the local currency steeply weakened against the greenback on Monday morning following U.S. President Donald Trump’s announcement of major tariffs on Canada, Mexico and China.

 
The Kospi immediately dipped after the market opened, falling as low as 2,440.45, a 3.08 percent drop from the previous session’s close, by 9:55 a.m. 
 

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As of 10:55 a.m., the benchmark index stood at 2,447.64, down 2.77 percent, or 69.73 points.  
 
Foreign and institutional investors are leading the drop, off-loading 443.1 billion won ($301.3 million) and 372.1 billion won, respectively.

 
The won dropped sharply against the dollar. After opening at 1,466 won per dollar, up 13.3 won from the previous session, the exchange rate breached 1,471 per dollar before stabilizing around the 1,470 mark.

 
The latest market jitters stemmed from concerns over a potential trade war triggered by Washington’s decision to impose significant tariffs on key trading partners. The White House announced on Saturday that the United States would impose 25 percent tariffs on imports from Canada and Mexico and 10 percent tariffs on imports from China, starting Tuesday.

BY SHIN HA-NEE [[email protected]]
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