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South Korean shares fall sharply after Wall Street drop

South Korean shares fall sharply after Wall Street drop

South Korean shares fell sharply Friday following steep declines on Wall Street over credit fears related to spreading turmoil from U.S. subprime mortgages.
The Korea Composite Stock Price Index fell as much as 70.99 points, or 4.1 percent, to 1,832.12 before rebounding slightly in late morning trading. Thursday in New York, the Dow Jones industrial average fell 387.18, or 2.83 percent, to 13,270.68.
South Korean blue chip stocks including Samsung Electronics Co., the country's largest corporation, and Posco, the world's fourth-largest steelmaker, declined.
Samsung fell 3.2 percent to 601,000 won (US$649; euro475), while Posco slid 4.4 percent to 503,000 won (US$541; euro396).
Moves in international markets affect the Kospi, said Kang Moon-sung, a strategist at Korea Investment and Securities Co.
"So no one is confident this level is (the) bottom," Kang said.
The trigger for Thursday's fall on Wall Street was French bank BNP Paribas saying it was freezing three funds that invested in U.S. subprime mortgages because it was unable to properly value their assets.
The announcement raised the specter of a widening impact of U.S. credit market problems.
The Kospi has been on a tear for most of this year, rising as much as 40 percent. On July 25, the benchmark closed at 2004.22, its first finish above 2,000.


Updated : 2021-10-17 20:14 GMT+08:00