US-Europe tariff conflict escalation causes sharp decline in global stock markets... KOSPI and KOSDAQ both weaken

Source: BlockMedia Original Title: [Market Opening] KOSPI Fluctuates Around 4840… Trump Greenland Tariff Bomb Sparks Forex and Stock Market Shock Original Link: https://www.blockmedia.co.kr/archives/1034349 The KOSPI is showing weakness due to negative news from the US.

According to the Korea Exchange, as of 9:13 AM, the KOSPI index was down 41.37 points(0.85%) from the previous trading day, recording 4844.38. The KOSPI started the session at 4808.94 and continues to trend downward.

The top 10 market capitalization stocks on the KOSPI showed mixed results. Samsung Electronics is trading up 0.96% at 146,600 won, and SK Hynix is up 0.40% at 746,000 won. Hyundai Motor rose 1.67% to 487,000 won, showing strength.

Meanwhile, LG Energy Solution declined 2.48% to 393,000 won, and Samsung Biologics(-0.89%), Hanwha Aerospace(-0.53%), HD Hyundai Heavy Industries(-2.50%), Kia(-0.37%), Doosan Enerbility(-3.57%) also showed weakness.

In terms of supply and demand, individual and institutional investors are net sellers, with 220.4 billion won and 63.2 billion won sold respectively. Foreign investors, on the other hand, are net buyers with 274.4 billion won.

Major Tech Stocks Plunge Simultaneously… AI Hopes Also Shaken

Last night, the three major US indices closed sharply lower. The Nasdaq Composite fell 561.07 points(2.39%) to close at 22,954.32.

The S&P 500 index declined 143.15 points(2.06%) to 6,796.86, and the Dow Jones Industrial Average dropped 870.74 points(1.76%) to 48,488.59.

All large-cap tech stocks with over $1 trillion market cap also declined. Nvidia and Tesla fell more than 4%, while Apple, Amazon, Alphabet, and Meta declined around 3%. The Philadelphia Semiconductor Index, which had been strong recently, also fell 1.68%.

Netflix plunged 4.9% in after-hours trading. Although Q4 earnings slightly exceeded market expectations, they did not meet investor hopes.

The decline in the New York stock market is attributed to intensified tariff conflicts between the US and the European Union(EU) over Greenland, which dampened investor sentiment. The US announced plans to impose tariffs of 10% starting next month and 25% from June 1 on eight European countries deploying troops to Greenland opposing the US plan to annex Greenland.

The EU plans to respond with a €93 billion tariff package against the US and is also considering measures called ‘economic nuclear weapons’(ACI), which include trade and investment restrictions, limits on financial services, bans on public procurement participation, and restrictions on intellectual property rights protections.

A researcher from a securities firm said, “The stock market has shown resilience against various negative factors for a while, but the profitability concerns of tech stocks remain unresolved. Recently, additional negative factors such as the Greenland issue and Japan’s fiscal deterioration controversy have weakened the overall market.”

He added, “However, the likelihood of actual asset sell-offs is low. Internally within Europe, there is also risk exposure to losses from US asset sales, and negotiations are still possible.”

KOSDAQ Starts Declining at 958… Won/USD Exchange Rate Opens at 1480.4

At the same time, the KOSDAQ index fell 17.47 points(1.79%) to 958.90, opening at 958.05 in early trading.

Top market cap stocks on the KOSDAQ also declined. Alteogen plunged 6.44% to 500,000 won, and EcoPro BM(-1.62%) and EcoPro(-2.75%) also declined. ABCL Bio fell 4.48%.

Other stocks including Rainbow Robotics(-1.53%), HLB(-2.11%), Samchundang Pharmaceuticals(-2.36%), Kolon TissuJin(-2.70%), Ligachem Bio(-4.14%), and Peptron(-2.85%) also declined collectively.

In terms of supply and demand, individuals and institutions are buying 5.7 billion won and 15 billion won respectively, while foreigners are selling 11.3 billion won.

In the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,480.4 won, up 2.3 won from the previous weekly closing.