Seoul: Shares tumble on US-China tensions, grim economic data

[SEOUL] South Korean shares dropped the most in a month on Monday as rising US-China tensions weighed on sentiment, while grim domestic economic data underscored the damage wrought by the coronavirus outbreak.

The Seoul stock market's main KOSPI closed down 52.19 points, or 2.68 per cent, at 1,895.37, marking the biggest fall since April 1. The index has declined 13.76 per cent so far this year.

Foreigners were net sellers of US$745.29 million worth of shares on the main board, the highest volume in nearly seven weeks.

The trading volume during the session in the KOSPI index was 1,133.13 million shares. Of the total traded issues of 896, the number of advancing shares was 316.

US Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus emerged from a Chinese laboratory.

South Korea's factories were ravaged by the pandemic in April, as worldwide lockdowns sent activity tumbling at its sharpest pace since the global financial crisis.

The crisis also sent South Korean exports plunging in April at their sharpest pace since the global financial crisis, signalling a bleak outlook for international trade as the pandemic paralyses the world economy and shatters demand.

South Korean financial markets will be closed on Tuesday for Children's Day holiday. Markets will reopen on Wednesday.

REUTERS