SEOUL, March 25 (Xinhua) -- South Korean shares tumbled Monday on growing worry about an economic slump caused by a yield curve inversion in the United States raising a recession possibility.
The benchmark Korea Composite Stock Price Index (KOSPI) sank 42.09 points, or 1.92 percent, to settle at 2,144.86. Trading volume stood at 321 million shares worth 4 trillion won (3.5 billion U.S. dollars). It was the KOSPI's biggest daily percentage loss in about five months.
Concern emerged about the U.S. economy as yields on the U.S. 10-year treasury bond fell below three-month rates, the first yield curve inversion since 2007. The inverted yield curve signals a higher possibility for recession.
Adding to the concern, manufacturing data from the United States and Germany drew a gloomy picture.
South Korea's central bank said in its work report to the parliament that the country's economic growth momentum worsened on slowing export coming from the global economic slowdown.
The country's export continued to fall for three months through February. During the March 1-20 period, the export declined 4.9 percent compared with the same period of last year.
Foreign and institutional investors were net sellers amid the risk-aversion mood, while retail investors bought stocks seeking a buy-on-dip strategy.
Most of blue-chip stocks lost ground in a broad sell-off of stocks. Market bellwether Samsung Electronics was down 2.3 percent, with memory chip giant SK Hynix off 4.2 percent.
Leading chemical firm LG Chem retreated 3.3 percent, with the biggest automaker Hyundai Motor skidding 2.8 percent.
Samsung BioLogics, the biopharmaceutical unit of Samsung Group, the country's biggest family-run conglomerate, shed 0.7 percent.
Top steelmaker POSCO slipped 2.3 percent, and the most-used search engine Naver dipped 0.8 percent. South Korea's currency finished at 1,134.2 won against the greenback, down 4.1 won from the prior close.
Bond prices ended higher. Yields on the liquid three-year treasury notes fell 3.0 basis points to 1.770 percent, and the return on the 10-year government bonds went down 4.6 basis points to 1.888 percent.
The benchmark Korea Composite Stock Price Index (KOSPI) sank 42.09 points, or 1.92 percent, to settle at 2,144.86. Trading volume stood at 321 million shares worth 4 trillion won (3.5 billion U.S. dollars). It was the KOSPI's biggest daily percentage loss in about five months.
Concern emerged about the U.S. economy as yields on the U.S. 10-year treasury bond fell below three-month rates, the first yield curve inversion since 2007. The inverted yield curve signals a higher possibility for recession.
Adding to the concern, manufacturing data from the United States and Germany drew a gloomy picture.
South Korea's central bank said in its work report to the parliament that the country's economic growth momentum worsened on slowing export coming from the global economic slowdown.
The country's export continued to fall for three months through February. During the March 1-20 period, the export declined 4.9 percent compared with the same period of last year.
Foreign and institutional investors were net sellers amid the risk-aversion mood, while retail investors bought stocks seeking a buy-on-dip strategy.
Most of blue-chip stocks lost ground in a broad sell-off of stocks. Market bellwether Samsung Electronics was down 2.3 percent, with memory chip giant SK Hynix off 4.2 percent.
Leading chemical firm LG Chem retreated 3.3 percent, with the biggest automaker Hyundai Motor skidding 2.8 percent.
Samsung BioLogics, the biopharmaceutical unit of Samsung Group, the country's biggest family-run conglomerate, shed 0.7 percent.
Top steelmaker POSCO slipped 2.3 percent, and the most-used search engine Naver dipped 0.8 percent. South Korea's currency finished at 1,134.2 won against the greenback, down 4.1 won from the prior close.
Bond prices ended higher. Yields on the liquid three-year treasury notes fell 3.0 basis points to 1.770 percent, and the return on the 10-year government bonds went down 4.6 basis points to 1.888 percent.
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