South Korean stocks fell below 1,200 points Friday morning as investors dumped stocks despite overnight gains on Wall Street.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 16.78 points or 1.38 percent to 1,230.56 in the first 15 minutes of trading but the index retreated soon, tumbling to 1192.20 as of 10:33.
However, the South Korean currency rose against the U.S. dollar as sentiment eased following Wall Street gains.
The local currency was trading at 1,320.75 won as of 9:21 a.m., up 52.25 won from Thursday's close. The Korean currency rebounded for the first time in three sessions.
The won has fallen more than 29 percent so far this year.
The South Korean main bourse lost 9.44 percent Thursday on concerns that the ongoing financial crisis could lead to a worldwide economic recession.
Steel and metal issues bounced back after falling steeply recently due to fears of an economic slowdown. POSCO, the top steel maker, surged 5.8 percent, buoyed by its disqualification for taking over Daewoo Shipbuilding and Marine Engineering (DSME). On the contrary, Hanwha plunged 12.20 percent on financial concerns after emerging as the strongest contender for DSME.
Samsung Electronics, SK Telecom, LG Electronics and Hyundai Motor were up 1 to 2 percent, while Korea Electric Power Corp., KB Financial Holdings, Shinhan Financial Holdings and Hyundai Heavy Industries were down.
The Dow Jones industrial average Thursday closed up 4.68 percent and the tech-dominated Nasdaq composite index also advanced 5.49 percent.
South Korea's currency soared against the U.S. dollar on Friday as sentiment was eased following overnight gains in U.S. markets, dealers said.