Seoul: South Korean stocks traded more than 2 percent lower late Friday morning on rising uncertainties over Seoul-Washington tariff negotiations and reduced hopes for additional rate cuts in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) had declined 73.2 points, or 2.11 percent, to 3,397.91 as of 11:20 a.m.

According to Yonhap News Agency, overnight, the Dow Jones dropped 0.38 percent, and the Nasdaq decreased 0.5 percent due to dim prospects for rate cuts by the Federal Reserve following better-than-expected economic growth. In addition, President Trump announced a set of new tariffs on U.S. imports, including 25 percent duties on heavy trucks, 100 percent on imported branded drugs, and 50 percent on bathroom and kitchen vanities.

The U.S. president also described South Korea’s US$350 billion investment commitment as “up-front” amid the ongoing Seoul-Washington negotiations for details of investment packages following their initial agreement in August. In Seoul, top-cap Samsun
g Electronics sank 2.79 percent, and chip giant SK hynix tumbled 4.63 percent.

SK Bioscience, a biotech arm under SK Group, dropped 2.78 percent, while major banking group KB Financial Group retreated 1.66 percent. Shipbuilders were weak as HD Korea Shipbuilding and Offshore Engineering fell 1.36 percent and Hanwha Ocean dropped 2.1 percent. Major game developer NCSOFT decreased 2.24 percent, and leading retailer Shinsegae lost 3.68 percent.

The local currency had been quoted at 1,410.85 won against the greenback as of 11:20 a.m., down 10.25 won from the previous session’s close.