South Korea stocks dropped 1.17 percent on Friday on renewed concerns over a global economic slowdown and dashed hopes for imminent stimulus measures from European and U.S. central banks, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index lost 22.73 points to close at 1,919.81. Trading volume was moderate at 615.9 million shares worth 4.3 trillion won ($3.8 billion), with losers outstripping gainers 542 to 278.
“There still remains widespread uncertainties about stimulus actions by the U.S. Federal Reserve and the European Central Bank,” said analyst Lee Seung-woo from Daewoo Securities Co. “And poor economic data from the U.S. and China showed signs that a recovery is still far away.”
Policymakers of the Fed and the ECB were widely expected to take actions to boost the slowing economy at their planned meetings next month, driving up the index earlier this week.
But a Fed official’s comment on Thursday that the U.S. central bank is not ready for stimulus packages weighed heavily on the local market.
Poor industry-related data from China and a rise in job claims in the U.S also stoked worries about the slowdown in the global economy.
“We don’t have any positive factors right now before the key events slated for next month,” said Lee.
Stocks closed lower across the board, led by techs, banks, shipbuilders and autos.
Tech giant Samsung Electronics lost 0.93 percent to close at 1,275,000 won, although a Seoul court ruled Apple infringed on two technology patents of Samsung. SK hynix, the world’s second-largest memory chipmaker, slumped 2.68 percent to 21,800 won. (Yonhap News)
