S. Korean Shares, Currency Tumble

South Korean stocks plunged 7.56 percent Thursday as investors shifted their focus onto a looming worldwide economic recession after political uncertainty in the U.S. was lifted following its presidential election. The local currency fell sharply against the greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) closed down 89.28 points at 1,092.22 after falling to as low as 1,081.79. Volume was heavy at 651.87 million shares worth 5.29 trillion won ($3.97 billion), with losers outpacing gainers 771 to 104.

"Taking a cue from drops in U.S. stocks, investors dumped shares as they seemed to wake up to the reality that Obama's elevation to the U.S. presidency will not turn things around overnight," Lee Sun-yup, an analyst at Goodmorning Shinhan Securities, was quoted as saying by Yonhap News. "Unstable currency movements added to market jitters."

On Wednesday, the Dow Jones industrial average tumbled 5.05 percent and the tech-heavy Nasdaq lost 5.53 percent after they both gained significant ground in the previous day's election rally.

Steep losses prompted the Korea Exchange (KRX), the bourse operator, to suspend program trading in early trading for five minutes after the main index futures prices dropped more than 5 percent. This marked the 19th trading suspension aimed at cooling markets this year.

Most large-cap shares ended sharply lower, with builders and financials among marked decliners. Top builder Daewoo Engineering & Construction tumbled 11.68 percent to 9,450 won while Kumho Industry dropped by its maximum daily limit of 14.95 percent to 12,800 won.

Steel and auto issues lost significant ground. Top steel maker POSCO plunged 10.56 percent to 322,000 won and No. 1 carmaker Hyundai Motor lost 10.58 percent to 49,000 won. Tech issues also added to the downswings with industry leader Samsung Electronics closing down 4.56 percent at 491,500 won.

A massive foreign sell-off in equity markets sent the local currency plunging. The won ended at 1,330.8 won to the U.S. dollar, down 64.8 won from Wednesday's close. Foreigners dumped a net 283.96 million worth of local shares.