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S Korea: Stocks plunge nearly 1.5% amid intensifying trade frictions
[SEOUL] South Korean shares slumped 1.4 per cent on Thursday as foreign investors and local institutions trimmed their equity exposure amid intensifying trade frictions. The won and the benchmark bond yield fell after the central bank cut its 2019 growth forecast further to a seven-year low.
The main KOSPI stock index closed down 32.12 points, or 1.43 per cent, at 2,213.77, declining for a second straight session.
South Korean shares extended losses as foreign investors who have been key to recent gains turned net sellers, said Kim Hyoung-ryoul, chief of research centre at Kyobo Securities.
Foreigners were net sellers of US$131.37 million worth of shares on the main board.
South Korea's central bank cut its 2019 growth forecast further to a seven-year low while keeping its policy rate unchanged, bolstering chances it may soon cut rates amid sagging exports and muted inflation.