KOSPI Down 38 Points to Fall Below 1380

The aftershock of the sharp fall in China’s stock market index on February 27 has hit the Asian financial markets, including Korea, once again on March 5.

Korea’s benchmark KOSPI index saw its biggest dive in eight months, and other Asian stock market indices in Japan and China also plummeted.

Seoul’s KOSPI index plunged 38.32 points (2.71 percent) to close at 1,376.15 on March 5, the largest percentage drop since June 13, 2006, and also its biggest point drop (43.71 points) since June 8, 2006.

The KOSDAQ index was down 12.96 points (2.14 percent) to end at 594.03. The sharp fall cost 20.2434 trillion won in total market capitalization combined from both the KOSPI and KOSDAQ. From February 27, the day when the stock markets plunge started, for four trading days, 47.6601 trillion won of market capitalization has been lost.

The nosedive of the stocks was also witnessed in other Asian markets as Japan’s benchmark Nikkei stock index, which lost 3.34 percent on the Tokyo Stock Exchange, Taiwan’s TSE, which fell 3.74 percent, and Shanghai Composite Index, which dropped 1.63 percent.

aryssong@donga.com kimsunmi@donga.com