Seoul: Shares dive 4% as coronavirus anxiety offsets stimulus boost

[SEOUL] South Korean shares closed nearly 4 per cent lower on Wednesday as the coronavirus pandemic and the prospect of a global recession overshadowed stimulus efforts by governments and central banks.

The Seoul stock market's benchmark KOSPI closed down 69.18 points, or 3.94 per cent, to 1,685.46, logging the biggest daily fall in more than a week. It dropped 23.31 per cent so far this year.

Foreigners were net sellers of US$447.92 million worth of shares on the main board.

China's factory activity improved in March after plunging a month earlier, a private survey showed on Wednesday, and the country will make further targeted cuts in the reserve requirement ratio (RRR) to help cushion the impact of the global coronavirus outbreak, state media reported on Tuesday.

Meanwhile, South Korea's factory activity fell at its fastest pace in 11 years in March, a private sector survey showed on Wednesday, and the country's exports also slipped back to contraction, trade ministry data showed.

REUTERS