Seoul: South Korean stocks were trading sharply lower late Monday morning, weighed down by semiconductors, after the United States and China threatened to take tit-for-tat trade measures. The benchmark Korea Composite Stock Price Index (KOSPI) had declined 36.61 points, or 1.01 percent, to 3,573.99 as of 11:20 a.m.
According to Yonhap News Agency, Wall Street took a hit on Friday after U.S. President Donald Trump warned he could levy a 100 percent tariff on China, in response to its export curbs on rare minerals produced in its country. Tensions further escalated on Sunday, as China signaled it will not back down from Trump tariffs. Hours later, Trump toned down his rhetoric, posting on social media that trade tensions with China will be resolved and that the U.S. "wants to help China, not hurt it." Trump's comments lifted U.S. stock futures on Sunday night.
In Seoul, however, most large cap shares lost ground, with semiconductors leading overall declines. Market bellwether Samsung Electronics retreated 2.22 percent, and its rival SK hynix dipped 3.62 percent. Defense giant Hanwha Aerospace went down 3.17 percent, major portal operator Naver fell 1.31 percent, and ship maker HD Hyundai Heavy Industries slid 0.39 percent.
The Korean won was quoted at 1,427.3 won against the U.S. dollar as of 11:20 a.m., down 6.3 won from the previous session's close.