The South Korean stock market has experienced declines for two consecutive sessions, shedding over 330 points or 11.9 percent in the process. The KOSPI Index now rests just above the 2,440-point mark and is poised for another subdued opening on Tuesday.
The global outlook for Asian markets remains grim due to ongoing concerns about the health of the U.S. economy. Both European and U.S. markets saw significant drops on Monday, and the Asian markets are expected to follow suit. However, this sell-off may be overextended and could ease as the day progresses.
On Monday, the KOSPI saw widespread losses across all sectors, driven by worries about the U.S. economy. The index plummeted by a record 234.64 points or 8.77 percent to close at 2,441.55. Trading volume amounted to 749.3 million shares worth 18.4 trillion won. Among the listed companies, there were 919 decliners and just 10 gainers.
Prominent losers included Shinhan Financial, which dropped 7.53 percent, KB Financial, down 7.69 percent, and Hana Financial, which fell 8.55 percent. Major tech stocks were also hit hard, with Samsung Electronics sliding 10.30 percent and Samsung SDI declining 9.66 percent. Other notable decliners included LG Electronics (-9.49 percent), SK Hynix (-9.87 percent), Naver (-8.93 percent), LG Chem (-11.67 percent), and Lotte Chemical (-11.43 percent). Additionally, SK Innovation contracted by 13.40 percent, POSCO plummeted 11.78 percent, SK Telecom dropped 4.24 percent, KEPCO fell 6.60 percent, Hyundai Mobis declined by 6.21 percent, Hyundai Motor retreated 8.20 percent, and Kia Motors skidded 10.08 percent.
Wall Street set a harsh tone as major indexes opened deep in negative territory on Monday and remained that way throughout the trading day. The Dow Jones Industrial Average plummeted 1,033.99 points or 2.60 percent to close at 38,703.27. The NASDAQ Composite dropped 576.08 points or 3.43 percent to end at 16,200.08, while the S&P 500 fell 160.23 points or 3.00 percent to finish at 5,186.33.
The persistent weakness in U.S. markets was attributed to fears that the economy might edge into a recession, following a disappointing jobs report released last Friday. However, stocks did regain some ground due to a report from the Institute for Supply Management, which indicated that service sector activity in the U.S. turned positive in July.
Oil futures also dipped on Monday, amid worries about demand in light of potential economic slowdowns in the U.S. specifically. West Texas Intermediate Crude oil futures for September delivery declined by $0.58 or 0.7 percent to settle at $72.94 per barrel.
