Last night, as the US stock market plunged sharply, investor sentiment weakened, leading the KOSPI to close lower.
On the 11th, the KOSPI index closed at 2537.60, down 32.79 points (1.28%) from the previous trading day. The KOSPI showed volatility, dropping to around 2505.91 during the morning session, but narrowed its losses thanks to net buying by individual investors. Individuals were net buyers of 491.6 billion KRW, while foreigners and institutions were net sellers of 363.6 billion KRW and 237 billion KRW, respectively.
As fears spread over U.S. President Trump's acceptance of a recession, the Nasdaq plummeted, causing the KOSPI to start lower on the 11th. The status board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul, displayed the KOSPI index and other figures. On that day, the KOSPI opened at 2,516.69, down 53.70 points (2.09%) from the previous trading day. Photo by Jo Yongjun, March 11, 2025
Earlier, President Donald Trump’s remarks that he would push forward with his policies, including tariffs, even at the cost of a temporary economic recession, significantly dampened investor sentiment.
In an interview with Fox News aired the previous day, President Trump said that the effects of his economic policies "take some time," and did not rule out the possibility of a recession this year. As a result, the Nasdaq fell 4%, the S&P 500 dropped 2.70%, and the Dow Jones declined 2.08%.
The domestic stock market was also affected, with most major stocks closing lower. Among the top 10 stocks by market capitalization, all fell except Celltrion (0.11%) and Kia (0.41%).
Samsung Electronics (-0.19%), SK Hynix (-0.05%), LG Energy Solution (-2.43%), Samsung Biologics (-1.39%), Hyundai Motor (-0.91%), Samsung Electronics Preferred (-1.10%), NAVER (-1.16%), and Hanwha Aerospace (-3.42%) all closed lower.
Among other major stocks, HD Korea Shipbuilding & Offshore Engineering (-6.87%) and HD Hyundai Mipo Dockyard (-6.00%) notably declined. This is interpreted as investors selling shipbuilding stocks, which had risen due to the shipbuilding industry boom, to realize profits.
The KOSDAQ index closed at 721.50, down 0.60% from the previous trading day. Foreigners were net buyers of 46.2 billion KRW, and individuals also net bought 48.7 billion KRW, but institutions were net sellers of 87 billion KRW.
Among the top market capitalization stocks, Hugel (2.17%) and Kolon TissueGene (5.13%) rose, while Alteogen (-0.54%), EcoPro BM (-3.25%), HLB (-1.63%), EcoPro (-2.83%), Samchundang Pharmaceutical (-0.15%), Classys (-1.00%), and Rigachem Bio (-1.21%) declined. Rainbow Robotics closed flat.
Looking ahead, the market is expected to focus on the US political budget negotiations. If the Republican and Democratic parties fail to reach an agreement on the budget, causing a federal government shutdown, market volatility could increase.
Han Ji-young, a researcher at Kiwoom Securities, said, "The US stock market plunge due to recession fears triggered by Trump is somewhat excessive," adding, "It is appropriate to respond while monitoring key US indicators and the tariff levels of the Trump administration."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
