South Korean stocks closed lower for a second straight day Friday, with some blue-chip battery shares tumbling, weighed down by a sharp fall in Tesla Inc. and U.S. data signaling a slowing economy. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) retreated 18.71 points, or 0.73 percent, to finish at 2,544.40. Trading volume was high at 958.5 million shares worth 12.4 trillion won (US$9.32 billion), with decliners outnumbering gainers 641 to 244.
“U.S. stock markets closed lower, reflecting recession worries, and this weighed on the Korean stock markets,” Seo Sang-young, an analyst at Mirae Asset Securities Co., said.
“Tepid U.S. economic data add to the view that the economy is likely to go into a recession in the second half, which means we’ll likely see our exports shrink, and these factors will continue to dampen investor sentiment,” Seo said.
Wall Street ended lower Thursday (local time) after Tesla hinted at more price cuts to come and that it intends to do so even if it hurts its margins.
New claims for unemployment benefits in the United States rose to the highest level in more than two years, pointing to a weak labor market. Housing market data also fell by more than expected in March, signaling the economy is heading for a recession.
In Seoul, top battery maker LG Energy Solution slid 1.38 percent to 572,000 won, with smaller rival Samsung SDI losing 2 percent to 734,000 won.
Battery components manufacturers LG Chem and POSCO Future M dipped 3.62 percent to 771,000 won and 6.99 percent to 379,500 won, respectively.
Top automaker Hyundai Motor fell 1.09 percent to 190,400 won, and its affiliate Kia ended down 0.95 percent to 83,300 won.
Top-cap Samsung Electronics, in contrast, rose 0.61 percent to 65,700 won. Chip giant SK hynix gained 1.6 percent to 89,100 won.
Builders were also among the gainers, led by Hyundai Engineering and Construction, which closed up 4.32 percent to 41,050 won, after reporting forecast-beating first-quarter earnings earlier in the day.
The local currency ended at 1,328.20 won against the U.S. dollar, down 5.4 won from Thursday’s close.
Source: Yonhap News Agency