Fear of global economic slowdown drives Seoul down 1.27%

Seoul, May 3 (Latest).- The Kospi, the benchmark index of the Seoul Stock Exchange, lost 1.27% on Monday and closed at its worst level in 17 months due to fears of a global slowdown caused by the tightening of US monetary policy, the war in Ukraine or the management of the pandemic in China.

The South Korean benchmark fell 33.7 points, to 2,591.34 integers, while the Kosdaq technology index fell 15.7 points, or 1.78%, to 868.52 units.

The prospect that the US Fed could raise rates again by half a point between now and the summer to control inflation, coupled with the situation in Ukraine and doubts about how long the Chinese “Covid zero” model that is affecting the supply chains, drew a day dyed in red from the beginning.

The selective ended at its worst level since November 30, 2020 and the South Korean currency, the won, lost 1.3 units against the dollar compared to last Friday, causing the green to change at the close of today’s session. 1,274 won, its highest level in two years.

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Samsung Electronics, the Kospi’s largest stock, lost 0.6% today, and the world’s second-largest memory chipmaker SK Hynix closed flat.

Naver, which owns South Korea’s leading search engine, rose 1.1% by contrast, while Kakao, which runs the most popular instant messaging app in South Korea, fell 0.24%.

The biopharmaceutical company Samsung Biologics climbed 0.5%, although the number one national carmaker, Hyundai Motor, fell 0.55%.

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