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Kospi tanks 1.22% on overnight losses on Wall Street

Published: 22 May. 2025, 17:03

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,593.67 points on May 22, down 31.91 points, or 1.22 percent, from the previous trading session. [YONHAP]

Shares dropped more than 1 percent Thursday as investors dumped most blue chips in line with overnight losses on Wall Street. The local currency gained against the dollar.

The Kospi fell 31.91 points, or 1.22 percent, to close at 2,593.67.

Trade volume was moderate at 353 million shares worth 8.64 trillion won ($6.26 billion), with losers outnumbering winners 632 to 257.

Foreign investors and institutions combined sold a net 915 billion won, while individuals bought a net 945 billion won.

Overnight, U.S. stocks closed lower amid concerns that U.S. President Donald Trump's push for large-scale tax cuts would widen the federal deficit, driving up Treasury yields.

The Dow Jones Industrial Average fell 1.9 percent, and the S&P 500 dropped 1.6 percent. The tech-heavy Nasdaq composite slumped 1.3 percent.

"The local stock market has apparently faced selling pressure due to the U.S. market movement," Kim Ji-won, an analyst at KB Securities, said. "With a lack of clear momentum to drive the market, a wait-and-see stance appears inevitable for the time being."

In Seoul, most blue chips traded in negative territory.

Market heavyweight Samsung Electronics plunged 1.8 percent to 54,700 won, and chip rival SK hynix also declined 1.8 percent to 196,900 won.

Battery and bio shares also retreated. Top battery manufacturer LG Energy Solution fell 1.08 percent to 274,500 won, and Samsung Biologics tumbled 1.82 percent to 1,080,000 won.

Automotive and heavy industry shares also lost ground. Top automaker Hyundai Motor plunged 2.98 percent to 182,400 won, and shipbuilder Hanhwa Ocean shed 2.4 percent to 77,300 won.

The local currency was trading at 1,381.3 won against the greenback at 3:30 p.m., up 5.9 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.9 basis point to 2.336 percent, and the return on the benchmark five-year government bonds dropped 0.5 basis point to 2.493 percent.

Yonhap