(RTTNews) - The South Korean stock market closed lower for the second straight trading session on Tuesday, but off the day’s low hit in opening trade. The benchmark Korea Composite Stock Price Index or KOSPI shed 35.4 points or 3.4% at 1,023.2, after opening 4.8% lower, tracking Wall Street’s plunge overnight and weak economic data.

In the currency market, the South Korean won fell sharply against the U.S. dollar. The won finished the domestic session at 1,464.3 a dollar compared to Monday’s close of 1,440.0 a dollar.

Wall Street tumbled sharply on Monday after the National Bureau of Economic Research said that the world’s largest economy has been in recession since December last year. A slew of weak economic data and comments form the chairman of the Federal Reserve Ben Bernanke that the economy remained under considerable strain also dented investor sentiment. The Dow Jones industrial average slumped 7.7%, recording its second-worst daily loss this year, while the tech-dominated Nasdaq composite index shed 9.0%.

Crude oil fell to its lowest level in more than three years on Tuesday in Asia on signs that the U.S. economy is in a more severe economic slowdown than expected. At 3:08 a.m. ET, oil was quoted at $47.86 a barrel, down $1.42 after the contract for January delivery plunged 9% or $5.15 to settle at $49.28 a barrel on the New York Mercantile Exchange on Monday.

In economic news, a report released by the central bank showed that the South Korean economy expanded slower than earlier estimated in the third quarter, as exports fell and domestic demand weakened. The country’s gross domestic product expanded a revised 0.5% on quarter in the July-September period, slightly lower than an earlier estimate of 0.6%.

Meanwhile, another government report showed that South Korea’s trade volume reached $804.6 billion as of November, up 16.9% from last year, exceeding the $800 billion mark for the first time this year on the growing competitiveness of locally made products and increased demand for imports. Exports and imports came in at $395.6 billion and $409.0 billion, respectively.

Tech shares were hit hardest. Market heavyweight Samsung Electronics fell 4.7% and LG Electronics lost 3.9%. Automakers extended losses for a second day after a report on Monday showed a drop in domestic car sales last month amid consumer spending reductions. Hyundai Motor dropped 5.7% and Kia Motors plummeted 7.5%.

Some financial shares, however, managed to finish in positive territory. Mirae Asset Securities climbed 0.8% and Shinhan Financial Group gained 1.7%.

Ssangyong Engineering & Construction sank 13.2% after a local media reported that South Korea’s third-biggest steelmaker Dongkuk Steel Mill has pulled out of a US$321 million offer to buy control of Ssangyong E&C. A consortium led by Dongkuk was picked as a preferred buyer of a 50.1% stake in Ssangyong E&C in July. Dongkuk said later on Tuesday that it would ask to delay the deal for the builder for at least a year.

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Posted in Categories: Economy, Releases, USA.

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