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Seoul stocks nosedive late Tue. morning

All News 11:41 October 05, 2021

SEOUL, Oct. 5 (Yonhap) -- South Korean stocks plunged more than 2 percent late Tuesday morning, as investor sentiment was weakened by the debt ceiling tussle in the United States and debt crises involving Chinese property developers.

The benchmark Korea Composite Stock Price Index (KOSPI) slumped 69.63 points, or 2.31 percent, to 2,949.55 points as of 11:20 a.m.

Seoul stocks got off to a weak start, falling below the 3,000-point level for the first time in about six months. The Korean stock market was closed Monday due to an extended holiday tied to the Oct. 3 National Foundation Day.

An impasse over the U.S. debt ceiling raised investors' concerns that the U.S. faces risks of a default and it may deal a blow to President Joe Biden's big spending plan. Energy prices stayed high, adding to the worries of a slowdown in global economic recovery.

The tech-heavy Nasdaq composite plunged 2.14 percent, with the S&P 500 losing 1.3 percent. The Dow Jones Industrial Average retreated 0.94 percent.

Failed debt payment by giant Chinese property developer Fantasia Holdings Group Co. also fanned anxiety, in addition to the ongoing default crisis involving another leading Chinese developer, Evergrande Group.

In Seoul, top cap Samsung Electronics declined 2.19 percent, and No. 2 chipmaker SK hynix fell 2.7 percent.

Internet portal operator Naver moved down 2.23 percent, and leading chemical firm LG Chem decreased 3.9 percent.

Top automaker Hyundai Motor lost 1.29 percent, and rechargeable battery maker Samsung SDI dipped 5.09 percent. Pharmaceutical giant Samsung Biologics tumbled 6.06 percent.

The local currency was trading at 1,187.65 won against the U.S. dollar, up 1.05 won from the previous session's close.


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