Both the KOSPI and KOSDAQ indexes were down more than 2% early on the 19th. The U.S. Federal Reserve (Fed) holding rates steady and a surge in international oil prices appear to be major factors.
As of 9:02 a.m., the KOSPI was down 2.80% (165.95 points) from the previous session at 5,759.08. The KOSPI opened at 5,761.40, down 163.63 points (2.76%) from the previous day.
In the Korea Exchange main board, individuals were net buyers of 139.0 billion won, while foreigners and institutions were net sellers of 110.6 billion won and 31.2 billion won, respectively.
Top market-cap stocks on the main board were all falling. Samsung Electronics and SK hynix were down more than 4%. Hyundai Motor, LG Energy Solution, SK Square, Samsung Biologics, Hanwha Aerospace, Doosan Enerbility, and Kia were also lower.
At the same time, the KOSDAQ was down 2.01% (23.42 points) from the previous day at 1,140.96. The KOSDAQ opened at 1,139.12, down 25.26 points (2.17%) from the day before.
On the KOSDAQ, foreigners were net buyers of 67.0 billion won, while individuals and institutions were net sellers of 46.8 billion won and 18.0 billion won, respectively.
Eight of the top 10 KOSDAQ market-cap stocks were falling. EcoPro, EcoPro BM, Alteogen, Sam Chun Dang Pharm, Rainbow Robotics, ABL Bio, LEENO Industrial, and LigaChem Biosciences were down, while only Kolon TissueGene and Peptron were higher.
Overnight, all three major New York indexes closed lower. The Fed's rate hold and a surge in international oil prices weighed on markets.
The Dow Jones Industrial Average finished 768.11 points (1.63%) lower at 46,225.15, the Standard & Poor's (S&P) 500 closed down 91.39 points (1.36%) at 6,624.70, and the tech-heavy Nasdaq composite ended 327.11 points (1.46%) lower at 22,152.42.
On the 18th (local time), the Fed kept the benchmark rate at 3.50% to 3.75%. It said the war between the United States and Iran is increasing uncertainty for the global economy.
International oil prices, which had been stable for a while, also surged. Israel bombed Iran's largest gas field, and Iran launched retaliatory attacks on energy facilities in neighboring countries. The May Brent crude futures settled at $107.38 per barrel, up 3.8% from the previous session.