South Korean shares drop more than 3% on worries about trade war

Kakao

28/02/2025 06:34

KOSPI falls, foreigners net sellers

Korean won weakens against dollar

South Korea benchmark bond yield falls

For the midday report, please click nL2N3PJ01N

SEOUL, Feb 28 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares dropped more than 3% on Friday, posting their worst session in nearly seven months, as worries about a global trade war heightened after U.S. President Donald Trump's tariff comments.

** The benchmark KOSPI .KS11 closed down 88.97 points, or 3.39%, at 2,532.78, its lowest since February 10. The index recorded the biggest daily percentage loss since August 5, 2024.

** "Investor sentiment was further hit by tariff noises amid economic slowdown worries," said Woo Ji-yeon, an analyst at DS Investment Securities.

** The KOSPI fell 4.6% this week, snapping a three-week run of gains and marking the worst weekly performance since mid-November 2024.

** For the month, the KOSPI rose 0.6%, after a 4.9% jump in the previous month.

** Trump on Thursday said his proposed 25% tariffs on Mexican and Canadian goods will take effect on Tuesday, along with an extra 10% duty on Chinese imports.

** Beijing on Friday promised retaliation to protect its interests.

** Chipmaker Samsung Electronics 005930.KS fell 3.20% and peer SK Hynix 000660.KS lost 4.52%, while battery maker LG Energy Solution 373220.KS slid 4.99%.

** Hyundai Motor 005380.KS shed 3.74%, while sister automaker Kia Corp 000270.KS lost 1.48%.

** Of the total 941 traded issues, 95 shares advanced, while 836 declined.

** Foreigners sold 1.55 trillion won ($1.06 billion) worth of local shares on a net basis, the biggest daily sell-off since January 27, 2022.

** The won was quoted 1.24% lower at 1,463.4 per dollar on the onshore settlement platform KRW=KFTC, its weakest level since February 4.

** In money and debt markets, March futures on three-year treasury bonds KTBc1 rose 0.07 point to 106.86.

** The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 2.6 basis points to 2.566%, while the benchmark 10-year yield KR10YT=RR fell by 2.3 basis points to 2.707%.

($1 = 1,461.9200 won)

 (Reporting by Jihoon Lee; Editing by Mrigank Dhaniwala)

 ((jihoon.lee@thomsonreuters.com;))