Seoul shares open sharply lower amid escalating trade war sparked by Trump tariffs

SEOUL, April 7 (Yonhap) -- South Korean stocks started sharply lower Monday amid growing fears of a global trade war triggered by U.S. President Donald Trump's tariff plans and China's countermeasures.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 103.56 points, or 4.2 percent, to 2,361.86 in the first 15 minutes of trading.

With the steep drop, the bourse operator issued a sidecar order at 9:12 a.m., halting program purchasing for five minutes, after the KOSPI 200 index shed over 5 percent for more than 1 minute.

It was the first sidecar order for program buying since August 2024.

Investors scurried to unload stocks as fears of a recession grew after the Trump administration's announcement of reciprocal tariffs last week led to China's retaliation that included additional 34 percent tariffs on U.S. goods.

Wall Street saw its worst week since the COVID-19 pandemic, with the S&P 500 plunging 6 percent Friday (U.S. time), while the Dow Jones Industrial Average plummeted 5.5 percent and the tech-heavy Nasdaq composite lost 5.8 percent.

In Seoul, major stocks were sliding.

Market bellwether Samsung Electronics fell 3.74 percent and its chipmaking rival SK hynix slumped 5.43 percent.

Top carmaker Hyundai Motor sank 4.74 percent, and major defense firm Hanwha Aerospace slipped 5.56 percent.

Leading shipbuilders Hanwha Ocean and HD Hyundai Heavy shot down 6.06 percent and 4.5 percent, respectively.

Financial shares also sharply went down, with KB Financial dipping 6.18 percent and Shinhan Financial losing 4.78 percent.

The local currency was trading at 1,467.2 won against the U.S. dollar at 9:15 a.m., down 33.1 won from the previous session.

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