South Korea: Stocks post sharpest fall in 15 months as China virus spreads

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The Seoul stock market's KOSPI index ended down 69.41 points, or 3.09 per cent, at 2,176.72, posting its sharpest one-day fall since Oct 11, 2018.[SEOUL] South Korean shares suffered their worst session in more than 15 months on Tuesday, dragged down by mounting worries over the economic impact of the new coronavirus outbreak.

Local stocks exposed to China, the biggest buyer of South Korean goods, dominated the losses as the death toll from the virus in the world's second-largest economy climbed to 106 and some health experts questioned whether Beijing can contain the virus, which could threaten global growth. The Seoul stock market's KOSPI index ended down 69.41 points, or 3.09 per cent, at 2,176.72, posting its sharpest one-day fall since Oct 11, 2018. The index touched its lowest since Jan 8 earlier in the session.

"South Korea's economy could take a bigger hit compared with other Asian countries due to its significant trade volume with China," said Choi Seok-won, chief of SK Securities' research centre.He added that the market is likely to bottom out only after investors confirm that China's countermeasures are working effectively.

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