Daijiworld Media Network - Seoul
Seoul, Apr 11: South Korean stocks closed lower on Friday as global investor sentiment took a hit amid escalating trade tensions between the United States and China, with Washington’s reciprocal tariff measures triggering fears of a prolonged trade standoff. The Korean won, however, strengthened against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dipped 12.34 points, or 0.5%, to settle at 2,432.72. Market turnover remained moderate, with 361 million shares traded, valued at 7.61 trillion won (approx. $5.25 billion).
Despite the dip, gainers outnumbered losers 536 to 340, as reported by Yonhap news agency.
Foreign investors emerged as net sellers, offloading stocks worth 688.5 billion won. In contrast, domestic individuals and institutions bought a net 571.5 billion won, attempting to stabilize the market amid volatility.
The sharp downturn followed an overnight slump on Wall Street, where major indices tanked in response to the intensifying tariff dispute. The S&P 500 fell 3.46%, the Dow Jones slid 2.5%, and the Nasdaq Composite dropped a staggering 4.31%.
“The tariff war dynamic has now shifted to a one-on-one standoff between the US and China,” said Han Ji-young, analyst at Kiwoom Securities, advising investors to remain cautious and observe developments rather than making rushed exit decisions.
Key South Korean stocks took a heavy blow:
• Samsung Electronics declined 2.13% to 55,200 won
• SK hynix shed 1.31% to 180,800 won
• LG Energy Solution plummeted 4.01% to 335,000 won
• Hyundai Motor dropped 5.08% to 177,500 won
• POSCO Holdings fell 2.3% to 255,000 won
• SK Innovation slumped 4.79% to 97,300 won
Despite market jitters, the Korean won rose by 6.5 won, trading at 1,449.9 per US dollar as of 3:30 pm.
In a symbolic online jab, Chinese Ambassador to South Korea, Dai Bing, posted a 30-second video on X depicting two sheep colliding one labeled ‘United States’ and the other ‘China.’ The US-labeled sheep stumbles and collapses, while the Chinese one stands tall. The ambassador credited China’s ‘resolute’ response for forcing Washington to pause new tariffs for 90 days, underscoring Beijing’s resolve in the economic clash.
As the US-China standoff shows no sign of easing, investors in South Korea and globally are bracing for further volatility in the days ahead.