(Seoul=News1) Reporter Lee Seung-bae: On the morning of the 11th at the Hana Bank headquarters dealing room in Jung-gu, Seoul, the KOSPI index displayed on the electronic board shows a decrease of 49.28 points (1.92%) from the previous trading day to 2,521.11. Meanwhile, last night, the New York stock market plummeted as concerns rose over the possibility of stagflation in the U.S. economy due to Trump’s tariff escalations. The Dow Jones Industrial Average fell by 2.08%, the S&P 500 by 2.69%, and the Nasdaq by 4.00%. March 11, 2025/News1.
Concerns over a U.S. recession have led to both the KOSPI and KOSDAQ starting the trading day with a decline of over 2%. This follows the sharp drop in the New York stock market after U.S. President Donald Trump hinted at the possibility of a recession.
As of 9:50 a.m. on the 11th, the KOSPI has fallen by 2.05% from the previous day to 2,517.67. Foreign and institutional investors are net selling 123.9 billion KRW and 154.7 billion KRW respectively. The KOSDAQ is also down by 1.85% at 712.33, with institutions net selling 28.8 billion KRW, dragging down the index.
All sectors on the KOSPI are in decline, and all of the top 10 market cap stocks are also down.
Leading semiconductor stock Samsung Electronics is trading at 52,700 KRW, down by 1.86%, while SK Hynix is trading at 181,900 KRW, down by 3.19%. Hanwha Aerospace, a leading defense stock that had previously surged, is down by 1.99% at 688,000 KRW, and Naver, a leading AI stock, is down by 1.51% at 211,750 KRW. On this day, the exchange rate of the won against the dollar started at 1,459.1 KRW, up by 6.8 KRW from the previous trading day.
Investor sentiment has turned cold after U.S. President Donald Trump, in an interview with Fox News, suggested there could be a “transition” period when asked about the possibility of a recession this year, indicating his willingness to endure economic deterioration. The three major U.S. stock indices dropped: the Dow by 2.08%, the S&P 500 by 2.70%, and the Nasdaq by 4%. The Nasdaq’s decline was the largest in two and a half years since September 13, 2022 (-5.16%), when the inflation shock was at its peak.