South Korean stock markets sink over 5 pc on US slowdown fears

Seoul, Aug 5 (IANS) South Korean stocks tumbled more than 5 per cent on Monday as fears of a US economic slowdown weighed heavily on the financial market, with a five-minute trade halt issued during the intra-day trading.

The benchmark Korea Composite Stock Price Index (KOSPI) had fallen 140.25 points, or 5.24 per cent, to 2,535.94.

During the session, the bourse operator issued a sidecar order, halting programme trading for five minutes, after the KOSPI 200 index fell over 5 per cent for more than one minute, reports Yonhap news agency.

US stocks fell for the second consecutive session Friday last week, with the Dow Jones Industrial Average sliding 1.51 per cent and the tech-heavy Nasdaq Composite sinking 2.43 per cent.

A disappointing jobs report spurred investor fears that the world’s largest economy is headed toward a recession.

In Seoul, most shares traded negative across the board.

Tech shares were among the biggest losers, with major chipmaker SK hynix slumping 5.6 per cent and flat screen manufacturer LG Display declining 5.77 per cent.

Top oil refinery SK Innovation fell 4.12 per cent, and major game publisher NCSOFT decreased 5.41 per cent.

Leading cosmetics maker LG H&H dropped 4.24 per cent, and defence company Hanwha Aerospace went down 2.08 per cent.

The local currency was trading at 1,360.45 won against the US dollar, down 10.75 won from the previous session.

On the other hand, in a dramatic start to the trading week, Japan’s benchmark TOPIX index plunged 5.7 per cent to close the morning session at 2,392.27.

Indian equity indices also opened in the deep red following negative cues from Asian peers over US economic slowdown anxiety.

–IANS

na/kvd