Seoul: South Korean stocks fell Thursday due to escalating concerns over a possible tariff war threatened by U.S. President Donald Trump despite better-than-expected earnings from artificial intelligence chip giant Nvidia. The local currency sharply lost against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 19.34 points, or 0.73 percent, to close at 2,621.75. Trade volume was moderate at 504.5 million shares worth 10.4 trillion won (US$7.2 billion), with decliners outnumbering gainers 563 to 321.
Foreign and institutional selling drove the daily decline, dumping a net 237.9 billion won and 279.2 billion won, respectively. Individuals, however, scooped up a net 484 billion won. Experts noted that Trump's overnight statements on tariff plans weighed heavily on the financial market, overshadowing Nvidia's better-than-expected quarterly results.
Trump announced plans for a 25 percent tariff on imports from Europe, while delaying tariffs on Canadian and Mexican goods for a month. In Seoul, most stocks saw declines. Market bellwether Samsung Electronics decreased 0.53 percent to 56,300 won, and its chipmaking rival SK hynix slid 1.87 percent to 199,200 won.
Leading pharmaceutical firm Celltrion fell 3.49 percent to 182,700 won, and top defense company Hanwha Aerospace dipped 3.42 percent to 649,000 won. Food giant CJ Cheiljedang edged down 0.2 percent to 247,000 won, and top online portal operator Naver tumbled 5.4 percent to 219,000 won.
However, Hybe, the record label behind global superstar BTS, rose 3.75 percent to 262,500 won, and discount store chain E-mart rose 2.79 percent to 77,300 won. The local currency was quoted at 1,443 won against the greenback at 3:30 p.m., down 9.9 won from the previous session.
Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys inched up 0.1 basis point to 2.592 percent, and the return on the benchmark five-year government bonds added 0.4 basis point to 2.680 percent.