Seoul: Seoul shares ended almost 1.5 percent lower Thursday as concerns over a global trade war were reignited following the U.S. administration's announcement of its plan to impose tariffs on all imported cars. The Korean currency gained ground against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) slid 36.79 points, or 1.39 percent, to close at 2,607.15. Trade volume was somewhat low at 397.8 million shares worth 7.6 trillion won (US$5.2 billion), with losers significantly outpacing winners 609 to 279. Institutions sold off 315.2 billion won worth of local shares, while foreigners and retail investors acquired 87.7 billion won and 119.7 billion won, respectively.
Overnight, major U.S. indexes declined, with the tech-heavy Nasdaq composite dropping 2.04 percent, as shares of Nvidia, Tesla, and other prominent tech companies fell sharply. U.S. President Donald Trump's announcement of 25 percent auto tariffs reduced investors' enthusiasm, as experts warned the move could adversely affect the global automotive market and heighten tensions in the global trade arena.
Earlier in the day, Trump signed a proclamation to impose the new tariffs on foreign-made cars, light trucks, and key parts, including engines and transmissions. These tariffs will take effect on April 2, with the government set to begin collecting them the next day.
In Seoul, automakers were directly affected, with Hyundai Motor dropping 4.28 percent to 212,500 won and its affiliate Kia falling 3.45 percent to 97,900 won. Hyundai Mobis, an auto parts-making affiliate of Hyundai Motor, also decreased by 2.1 percent to 279,500 won.
SK hynix declined 3.27 percent to 207,000 won, following an overnight slump of the U.S. artificial intelligence chip giant Nvidia, which lost 5.74 percent. In contrast, Samsung Electronics gained 0.65 percent to 61,800 won.
Internet portal operator Naver and Kakao, the operator of the country's leading mobile messenger, both fell over 3 percent to 197,800 won and 41,600 won, respectively. Leading shipbuilder Hanwha Ocean also dropped 4.12 percent to 67,500 won, and its competitor HD Hyundai Heavy fell 3.99 percent to 276,500 won.
The local currency was trading at 1,465.3 won against the greenback at 3:30 p.m., up 1 won from the previous session.