SEOUL - The Seoul stock market commenced trading lower on Monday, showing a divergence from the upward trend in Wall Street, which had responded positively to recent robust U.S. employment figures. The Korea Composite Stock Price Index (KOSPI) experienced a slight decrease in the early trading hours despite optimistic job growth data from the United States.
According to Yonhap News Agency, the KOSPI dropped 6.29 points, or 0.23 percent, to reach 2,707.92 shortly after the market opened. This decline occurred in the context of positive signals from Wall Street, where indices closed higher following the release of U.S. employment data for March. The data suggested the strongest job growth in nearly a year, a sign many interpret as indicative of a resilient U.S. economy.
Despite the general optimism in the U.S. markets, South Korean investors appear cautious, particularly with impending U.S. inflation data expected to provide further insights into future Federal Reserve rate decisions. This upcoming data is deemed crucial for global market trends and could influence investment strategies in South Korea and beyond.
Notable movements in the Seoul market included a rise in Samsung Electronics by 1.07 percent, contrasting with a decline in SK hynix by 0.44 percent. LG Energy Solution saw a significant drop of 4.12 percent, echoing a downturn in Tesla's shares, while Samsung SDI and POSCO Future M also faced declines. Conversely, the automotive sector showed resilience, with Hyundai Motor and Kia posting gains of 3.1 percent and 3.33 percent, respectively.
The South Korean won weakened against the dollar, trading at 1,354.60 won, down by 1.80 won from the previous session's close, reflecting the broader uncertainties influencing investor sentiment in Seoul amid global economic developments.