South Korean Stocks Plunge Amid US Recession Fears, Trigger Trading Curb
South Korean stocks experienced significant declines on Monday, driven by concerns over a potential U.S. recession. The benchmark KOSPI index dropped 109.81 points, or 4.1%, to 2,566.38, marking its lowest level since April. This follows a 3.6% drop on Friday, the largest single-day decline in nearly four years. Tech giants Samsung Electronics and SK Hynix were particularly affected, with their shares falling over 7%. The South Korean won weakened by 0.56%, and bond yields reached lows not seen since April 2022.
The downturn in South Korean markets was mirrored across broader Asian markets, with the MSCI Asia Pacific ex-Japan Index falling 2.5% and Japan's Nikkei declining 4.6%. The slump in South Korean stocks was severe enough to trigger a trading curb for the first time in four years. This market volatility is linked to disappointing economic data from the U.S., including a jobs report that has heightened fears of a recession and pushed the Nasdaq into correction territory. South Korean authorities have indicated their readiness to take action to stabilize the market.