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 a bit slim at 397.8 million shares worth 7.6 trillion won (US$5.2 billion), with losers sharply outnumbering winners 609 to 279. Institutions unloaded 315.2 billion won worth of local shares, while foreigners and retail investors purchased 87.7 billion won and 119.7 billion won, respectively.
Overnight, major U.S. indexes lost ground, with the tech-heavy Nasdaq composite sliding 2.04 percent, as Nvidia, Tesla, and other blue chip tech shares sharply went down. U.S. President Donald Trump's announcement of 25 percent auto tariffs sapped investors' appetite, according to experts, mounting concerns the move could deal a blow to the global automotive market and further escalate tensions in the global trade market.
Earlier in the day, Trump signed a proclamation to impose the new tariffs on foreign-made cars, light trucks, and key parts, such as engines and transmissions. They will go into effect April 2, with the government set to start collecting them the following day.
In Seoul, automakers took a direct hit, with Hyundai Motor plunging 4.28 percent to 212,500 won and its sister Kia sliding 3.45 percent to 97,900 won. Hyundai Mobis, an auto parts-making affiliate of Hyundai Motor, also shed 2.1 percent to 279,500 won.
SK hynix also fell 3.27 percent to 207,000 won, tracking an overnight slump of the U.S. artificial intelligence chip giant Nvidia, which lost 5.74 percent. Samsung Electronics, on the other hand, gained 0.65 percent to 61,800 won.
Internet portal operator Naver and Kakao, the operator of the country's top mobile messenger, both pulled back more than 3 percent to 197,800 won and 41,600 won, respectively. Leading shipbuilder Hanwha Ocean also decreased 4.12 percent to 67,500 won, and its rival HD Hyundai Heavy plummeted 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. Bond prices, which move inversely to yields, ended mixed. The yield on three-year Treasurys rose 0.4 basis points to 2.622 percent, while the return on the benchmark five-year government bonds dropped 0.8 basis points to end at 2.705 percent.