STORY: S. Korean stocks close 8.8 pct lower on U.S. recession fears
SHOOTING TIME: Aug. 5, 2024
DATELINE: Aug. 5, 2024
LENGTH: 00:00:52
LOCATION: Seoul
CATEGORY: ECONOMY

SHOTLIST:
1. various of Korea Composite Stock Price Index (KOSPI) gradually falling below 2,600 and 2500 at the Korea Exchange (KRX) (Xinhua/Yonhap)
2. various of the closing index of the Korea Composite Stock Price Index (KOSPI) (Xinhua/Yonhap)

STORYLINE:

South Korean stocks closed 8.8 percent lower on Monday as investors panicked on rising fears of the U.S. economic recession.

The benchmark Korea Composite Stock Price Index (KOSPI) dived 234.64 points, or 8.77 percent, to close at 2,441.55.

The KOSPI started 2.42 percent lower and extended losses as U.S. stocks closed lower for the second straight session on Friday last week.

The disappointing announcement of the U.S. jobs data triggered fears of the U.S. economic recession among local investors, market watchers said.
   
The bourse operator issued a circuit breaker on the KOSPI at 2:14 p.m. local time (0514 GMT) to halt trading for 20 minutes as the main index dropped over 8 percent for more than a minute.
   
About 20 minutes earlier, a separate circuit breaker was issued for the small-cap KOSDAQ index that tumbled 88.05 points, or 11.30 percent, to finish at 691.28.

It marked the first time since March 2020 that the circuit breaker was activated both in the KOSPI and the KOSDAQ in a single day.

A sidecar order on the KOSPI was issued at 11:00 a.m. local time to suspend program trading for five minutes after the KOSPI 200 futures index dropped over 5 percent for more than a minute.

The sidecar order was also issued on the KOSDAQ at 1:05 p.m. local time.

The won/dollar exchange rate was quoted at 1,374.8 won per dollar at 3:30 p.m. local time, up 3.6 won compared to the previous close. 

Xinhua News Agency correspondents reporting from Seoul.
(XHTV)