SEOUL, Aug. 5 (Xinhua) -- South Korean stocks and currency tumbled Monday on growing worries about a trade row with Japan, coupled with concerns over the global trade dispute. Bond prices went up as investors sought risk-averse assets.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 51.15 points, or 2.56 percent, to settle at 1,946.98. Trading volume stood at 622.1 million shares worth 6.5 trillion won (5.4 billion U.S. dollars).
It was the lowest close in over three years since June 2016. Adding to the concern about the global trade friction, Japan removed South Korea Friday from its whitelist of trusted trading partners that are given preferential treatment for export.
On July 4, Japan tightened regulations on its export to South Korea of three materials vital to manufacture memory chips and display panels, which are the mainstay of the South Korean export.
The tech-savvy KOSDAQ index dropped 45.91 points, or 7.46 percent, to close at 569.79, falling below 600 in around two and a half years. It was the lowest close in over four and a half years.
Transactions in the KOSDAQ market was briefly suspended during the trading as the index declined excessively.
The local currency sharply depreciated versus the dollar, driving foreign investors to dump the undervalued domestic stocks.
The South Korean currency finished at 1,215.3 won against the greenback, down 17.3 won from the previous close. It was the highest won/dollar exchange rate in about three and a half years since March 2016.
Bond prices ended sharply higher as investors evaded risky assets amid the mounting risk-averse sentiment.
Yields on the liquid three-year treasury notes dipped 8.8 basis point to 1.172 percent, and the return on the 10-year government bonds shrank 9.6 basis points to 1.253 percent.
On the main bourse, foreign and retail investors dumped local shares. Financial institutions bought stocks, limiting the KOSPI's further decline.
Market bellwether Samsung Electronics retreated 2.2 percent, and memory chip giant SK Hynix lost 0.9 percent. The most-used search engine Naver diminished 2.8 percent, and leading chemical firm LG Chem tumbled 4.8 percent.
The biggest auto parts maker Hyundai Mobis contracted 1.4 percent, and the biosimilar pharmaceutical company Celltrion plunged 11 percent. The largest automaker Hyundai Motor was unchanged, but the No.1 telecom company SK Telecom added 0.2 percent.
