Seoul shares sharply down on geopolitical tensions, US-China trade dispute
Investors monitor stock price movements at a securities company in Shanghai on May 6. U.S. President Donald Trump sent Asian markets plunging after threatening to hike tariffs on $200 billion of Chinese goods at the end of the week in a bid to speed up stuttering trade talks between the economic superpowers. AFP
South Korean stocks opened sharply lower Tuesday on concerns over increased geopolitical risks stemming from North Korea's test-firing of projectiles and the deepening trade dispute between the world's two largest economies.
The benchmark Korea Composite Stock Price Index (KOSPI) nosedived 29.61 points, or 1.35 percent, to 2,166.71 in the first 15 minutes of trading.
North Korea conducted the test-firing of a barrage of projectiles on Saturday, upping tensions on the Korean Peninsula.
U.S. President Donald Trump also earlier this week vowed to raise Washington's tariffs on US$200 billion worth of Chinese products to 25 percent from the current 10 percent starting later this week.
The South Korean stock market was closed Monday as a substitute day off for Children's Day, which fell on Sunday.
Market kingpin Samsung Electronics moved down 1.66 percent, and No. 2 chipmaker SK hynix fell 1.87 percent. LG Display also decreased 2.58 percent.
Chemical firms lost ground, with industry leader LG Chem surrendering 2.06 percent and LG Household & Health Care slipping 1.95 percent. Top refiner SK Innovation slid 0.56 percent.
Pharmaceutical shares started lower as well, with Celltrion losing 1.47 percent and Samsung BioLogics decreasing 2.69 percent.
The local currency closed at 1,173.10 won against the U.S. dollar, down 3.10 won from the previous session. (Yonhap)