South Korean Stock Market Takes Biggest Fall of Year Amid Global Recession Fears, Reports Say

MOSCOW (Sputnik) - Seoul's benchmark Korea Composite Stock Price Index fell by 42.31 points, or 1.81%, on Friday to its lowest level for 2022, as interest rate hikes by the US Federal Reserve fed fears of a worldwide recession, Yonhap News agency reported.

"Today's decline is attributed to lack of buying interest amid the weakening Korean won and soaring bond yields," Seo Sang-yeong, an analyst from Mirae Asset Securities, said, as cited by Yonhap.

Samsung Electronics went up 0.18% while Hyundai Motor lost 1.55% and top battery maker LG Energy Solution tumbled 5.73%. As yields went up, bond prices closed lower.

The South Korean currency was up 0.4 won against the dollar from close of business on Thursday, when it fell to below 1,400 won to the dollar, its lowest level in 13 years, following bad news from the United States.

The Fed announced on Wednesday it was raising its target interest rate by 75 basis points for the third time in a row. On Thursday, Wall Street was down, generating concern among Korean investors that the Fed's aggressive monetary policy could exacerbate a global slowdown.

On Friday, South Korea's finance minister vowed to move to stabilize the volatile bond market.