SEOUL, Oct 05 (Yonhap) – South Korean stocks plunged more than 2% late Tuesday morning, as investor confidence was weakened by the fight against the debt ceiling in the United States and debt crises involving Chinese real estate developers.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 69.63 points, or 2.31%, to 2,949.55 points as of 11:20 a.m.
Seoul stocks got off to a weak start, falling below 3,000 points for the first time in about six months. The Korean stock market was closed on Monday due to an extended holiday linked to National Foundation Day on October 3.
A deadlock on the US debt ceiling has raised concerns among investors that the United States faces default risks and it could deal a blow to President Joe Biden’s grand spending plan. Energy prices have remained high, adding to concerns of a slowing global economic recovery.
The high-tech Nasdaq composite plunged 2.14%, with the S&P 500 losing 1.3%. The Dow Jones Industrial Average was down 0.94%.
The failure to pay the debt by giant Chinese real estate developer Fantasia Holdings Group Co. has also fueled anxiety, in addition to the ongoing default crisis involving another prominent Chinese developer, Evergrande Group.
In Seoul, the top cap Samsung Electronics fell 2.19% and the No. 2 chipmaker SK hynix fell 2.7%.
Internet portal operator Naver fell 2.23 percent, and leading chemical company LG Chem fell 3.9 percent.
Major automaker Hyundai Motor fell 1.29% and rechargeable battery maker Samsung SDI fell 5.09%. Pharmaceutical giant Samsung Biologics fell 6.06%.
The local currency was trading at 1,187.65 won against the US dollar, up 1.05 won from the close of the previous session.