Stocks drop to lowest level in over two years Monday, won continues to tumble

Stocks dropped to the lowest level in over two years and the won continued to tumble Monday amid growing fears of a global economic recession caused by combative monetary tightening in major economies.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,220.94 points on Monday, down 69.06 points, or 3.02 percent, from the previous trading day. [YONHAP]

Stocks dropped to the lowest level in over two years and the won continued to tumble Monday amid growing fears of a global economic recession caused by combative monetary tightening in major economies.

The benchmark Kospi fell by 69.06 points, or 3.02 percent, to end at 2,220.94, the lowest since July 27, 2020. The market slid for a fourth consecutive session.

Trading volume was moderate at 611.4 million shares worth 9.18 trillion won ($6.4 billion), with decliners far outnumbering gainers 891 to 34.

Foreign investors sold a net 3.6 billion won worth of shares and retail investors a net 244.9 billion won, while institutional investors bought a net 279.3 billion won.

The local stock market opened sharply lower tracking a decline on Wall Street on Friday, as investors fled for safety, cashing out of the stock market on fears that aggressive rate hikes by the Federal Reserve and other central banks could seriously hurt the global economy.

Last week, the Fed raised its benchmark interest rates by three-quarters of a point, its third increase in a row to bring down inflation.

In Seoul, Samsung Electronics lost 1.1 percent to close at a 52-week low of 53,900 won and SK hynix shed 1.2 percent to 82,500 won.

Hyundai Motor dipped 4.2 percent to 182,500 won, while LG Energy Solutions slid 3.04 percent to 446,500 won. LG Chem dropped 5.46 percent to 571,000 won.

Daewoo Shipbuilding & Marine Engineering spiked 13.4 percent to close at 24,950 won.

The local currency ended at 1,431.30 won against the dollar, sharply up 22 won from the previous session's close and a level unseen in over 13 years. The won has depreciated around 17 percent per dollar so far this year.

The Kosdaq lost 36.99 points, or 5.07 percent, to close at 692.37 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds advanced 33.3 basis points to 4.463 percent, and the yield on the 10-year government bond gained 19.5 basis points to 4.302 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]