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Seoul: Shares plunge on China's downbeat factory data, second virus wave worries

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South Korean shares plunged 4.8 per cent on Monday, the sharpest daily fall since late March, after China's smaller-than-expected factory data suggested the economic recovery remained fragile amid growing worries of a second wave of coronavirus infections. 

[SEOUL] South Korean shares plunged 4.8 per cent on Monday, the sharpest daily fall since late March, after China's smaller-than-expected factory data suggested the economic recovery remained fragile amid growing worries of a second wave of coronavirus infections. 

The Seoul stock market's main Kospi closed down 101.48 points, or 4.76 per cent, at 2,030.82, marking its sharpest fall since March 23.

New coronavirus cases and hospitalizations in record numbers swept through more US states, including Florida and Texas, as most push ahead with reopening.

China's industrial output rose for a second straight month in May but the gain was smaller than expected, suggesting the economy is still struggling to get back on track after the coronavirus crisis.

It is a bit early to worry about a second wave in Korea, said DS Investment & Securities' analyst Na Jeong-hwan, adding that investors' worries may grow if the number of new cases rises to a three-digit number.

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South Korea reported 37 new coronavirus cases on Monday, of which 24 were domestic infections.

Foreigners were net sellers of US$390.42 million worth of shares on the main board.

REUTERS

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