South Korea - August 05, 2024

South Korean stocks closed 8.8 percent lower on Monday as investors panicked on rising fears of 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. job data triggered fears of U.S. economic recession among local investors, market watchers said.

The bourse operator issued a circuit breaker on the KOSPI at 14:14 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 local time to suspend program trading for five minutes after the KOSPI 200 futures index dropped over five percent for more than a minute.

The sidecar order was also issued on the KOSDAQ at 13:05 local time.

The won/dollar exchange rate was quoted at 1,374.8 won per dollar at 15:30 local time, up 3.6 won compared to the previous close.

The Australian Securities Exchange's ASX 200 index fell sharply, down 2.5 percent on opening on Monday. During the afternoon trading session, the downward trend intensified, closing at 7650 points, dropping 3.7 percent across the day.

Major stock market indices in Europe all faced collective decline on Monday. As of 16:30 Beijing time, the UK's FTSE 100 Index has tumbled by 2 percent, Germany's DAX Index dropped 2.22 percent and the Paris CAC 40 fell 1.97 percent.

Shotlist:
Seoul, South Korea - Aug 5, 2024:
1. Various of screens showing KOSPI, KOSDAQ, stock prices;
2. Various of staff at stock exchange;
3. Various of Korea Exchange interior, screens showing KOSPI, KOSDAQ, stock prices;
FILE: Seoul, South Korea - Date Unknown
4. Pedestrians on street;
5. Various of traffic.

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