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| A currency trader passes by screens showing the KOSPI, center left, and the exchange rate for Korean won against the U.S. dollar, center right, in the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, May 12. Shares fell in Asia, Thursday, after the release of U.S. inflation data that was worse than expected sparked heavy selling of technology stocks on Wall Street. AP-Yonhap |
Seoul shares dropped by more than 1.5 percent Thursday extending their losing streak for an eighth day as technology stocks declined amid concerns over high inflation and a global economic slowdown. The Korean won also fell sharply against the U.S. dollar.
The KOSPI fell 42.19 points, or 1.63 percent, to 2,550.08, its lowest finish since Nov. 19, 2020.
Trading volume was moderate at 883.2 million shares worth 11.93 trillion won ($9.25 billion), with decliners outpacing gainers 794 to 117.
The main index has continued to fall in the past eight sessions as investors expect the Federal Reserve to deliver a series of big-step rate hikes in the months to come to tame high-flying inflation.
Overnight, the Dow Jones Industrial Average fell 1 percent, while the tech-heavy Nasdaq Composite Index tumbled 3.2 percent.
"Worse-than-expected U.S. inflation data sparked heavy selling of technology stocks on Wall Street. It also weighed on Korean tech stocks," Noh Dong-kil, an analyst at Shinhan Investment, said.
At the moment, there seems to be no upward momentum due to further rate hikes in the U.S. and the fallout from China's COVID-19 lockdown, he said.
Institutions and foreign investors sold a combined 433.56 billion won worth of stocks, outpacing individuals' purchases valued at 385.92 billion won.
Most large-cap stocks declined across the board.
Market bellwether Samsung Electronics fell 1.2 percent to 64,900 won, No. 2 chipmaker SK hynix declined 1.4 percent to 109,000 won, top carmaker Hyundai Motor lost 1.4 percent to 180,500 won, and national flag carrier Korean Air Lines shed 3.2 percent to 28,450 won.
Among gainers, the country's leading tiremaker Hankook Tire Technology jumped 7.4 percent to 35,750 won, Korea Aerospace Industries rose 0.7 percent to 46,450 won, and state-run utility Korea Electric Power gained 0.7 percent to 22,250 won.
The local currency ended at 1,288.60 won against the U.S. dollar, down 13.30 won from Wednesday's close. (Yonhap)
