South Korea's key stock index had its biggest fall in more than six years on Friday in the wake of a brewing trade war between the United States and China, data showed Sunday.
The benchmark Korea Composite Stock Price Index plunged 79.26 points, or 3.18 percent, to 2,416.76 on Friday, the biggest daily loss since Nov. 10, 2011, when a debt crisis engulfed some European countries, according to the data from the Korea Exchange.
It also marked the 15th-largest daily drop since 1987, when the bourse operator began compiling related data.
(Yonhap)
The heaviest daily decline was recorded on Oct. 16, 2008, when the world was in the throes of a devastating financial crisis.
KOSPI's tumble comes amid growing concerns about tit-for-tat trade measures between Washington and Beijing, the world's two largest economies, known as the Group of Two (G2).
US President Donald Trump signed an executive order Thursday calling for the imposition of stiff tariffs on imports from China and restrictions on Chinese investment in the world's leading economy.
A day later, Beijing issued a statement that says it will slap retaliatory tariffs of $3 billion on US steel, pork and other products.
Yet market analysts said there is limited possibility of the worst-case scenario unfolding because it would be detrimental to both the US and China.
"A full-fledged trade war would wreak havoc on the two economic giants," Hana Financial Investment Co. economist Soh Jae-yong said.
"Given that, the possibility of the worst-case scenario materializing remains limited." (Yonhap)