Worldwide stock crash beats down on marketsAmerican stocks took their biggest hit in four years yesteday after the selloff in China spread globally.
The fallout from huge Chinese losses brought Korean stocks down sharply as well, as the benchmark Kospi plummeted 37.26 points, or 2.6 percent, to 1,417.34.
“The main index’s nosedive was sparked by China’s massive stock losses the previous day, which sent shock waves through global markets,” said Park Seok-hyun at Kyobo Securities.
On Tuesday, the Shanghai Composite Index, one of China’s main trading markets, dove 8.8 percent, the biggest daily loss in 10 years, on predictions of imminent government policies to slow the economy, including plans to levy more tax on profit made from stock trades. The Dow Jones fell 4.3 percent, and the Nikkei 225 stock average lost 2.9 percent.
On the Kospi, bellwether Samsung Electronics lost 2.4 percent to 567,000 ($602), and Hynix Semiconductor, the world’s second-largest chip manufacturer, slipped 2.5 percent.
Leading brokerage Samsung Securities fell 3.1 percent; other securities firms fell as well.
Automobile makers also lost with Hyundai Motor down 1.6 percent.
Three major financials ― Shinhan, Woori and Hana financial groups ― all lost around 5 percent. Volume was heavy with 320.5 million shares worth 4.4 trillion won traded. Losers pummeled winners 545 to 92.
The tech-heavy junior Kosdaq index couldn’t escape the crash, either, losing 10.6 points, or 1.7 percent, to 600.93.
Sales outnumbered buyers for the first time in four days, but losses were relatively minor compared to the Kospi in monetary terms. More than 626 million shares worth 1.8 trillion won changed hands. Losers hammered gainers 727 to 198.
By Hwang Young-jin Staff Writer [firstname.lastname@example.org]