Kospi loses another important threshold as stagflation fears spoil Yoon's inauguration day

[Photo by Yonhap]

South Korean markets were hardly in celebrating mood for a new government under President Yoon Suk-yeol who was inaugurated Tuesday as the Kopsi lost psychologically-important 2,600 threshold to the lowest in 18 months while the Korean won hit its weakest in two years during the day.

The Kopsi finished Tuesday 0.55 percent lower at 2,596.56 after falling as low as 2,553.01, the lowest since November 2020.

Foreigners remained relentless sellers while retailers defended equally heavily.

The Kosdaq ended 0.55 percent lower at 856.14 after sinking to 831.59, the lowest since November 13, 2020.

The falls are in sync with the overnight losses on Wall Street amid stagflation scare across the globe. The S&P 500 plunged 3.20 percent to close Monday at 3,991.24, below the 4,000 level for the first time in a year, while the Nasdaq lost 4.29 percent to the lowest since November 10, 2020.

The Dow Jones Industrial Average also was down 1.99 percent to the weakest since March 9, 2021.

The U.S. dollar was mostly flat at 1,276.40 won after consecutive climb towards 1,230 won, its strongest in 13 years.

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