SEOUL: South Korean stocks started off with a more than 2 percent drop Friday on increased geopolitical risk stemming from the two Koreas’ cross-border artillery exchange and the steep overnight fall on Wall Street, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) dipped 41.52 points, or 2.17 percent, to trade at 1,873.03 in the first 10 minutes of trading.
Most shares lost ground across the board, led by top-cap exporters. Tech giant Samsung Electronics lost 1.5 percent, and No. 1 carmaker Hyundai Motor sank nearly 3 percent.
North Korea fired artillery rounds at the South on Thursday, demanding a halt to loudspeaker propaganda broadcasts. Seoul responded by firing dozens of shells and warned it will deal firmly with any future provocations. Both countries have placed their militaries on high alert.
Concerns looming over a global slowdown due to the latest financial rout in China, triggered by devaluations of its currency, also battered the local stock market.
