Seoul Stock Market Posts Largest 1-Day Plunge

Seoul stocks today recorded their biggest single-day plunge, partly on nervousness about labor unrest following violence at South Korea’s biggest shipyard over the weekend.

Meanwhile, the Tokyo market was closed today and will be closed Thursday and Friday for holidays.

South Korean investors angry over the government’s refusal to support the sliding market forced several provincial brokerages to keep their doors locked.

The composite stock index dived through the 700-point barrier in early trade and closed down 31.71 points, or 4.4%, at 688.66, close to the absolute limit down.

Brokers said the main reason for today’s drop was comments by economic planners over the weekend that the government would not prop up the falling market.

Bearish sentiment was exacerbated by labor unrest in Ulsan, where tens of thousands of Hyundai workers on today stayed away from work to protest a police storming of the company’s main shipyard on Saturday to evict some strikers.

About 15 branches of securities companies in the southwestern city of Kwangju refused to open their doors today, Yonhap news agency reported.

Extremely bearish sentiment also forced down Australia’s share market, which finished sharply lower.

The All Ordinaries index shed 21.9 points to finish at 1434.5, with the all industrials plunging 38.2 points, or 1.6%, to end at 2226.0.

“Sentiment is very poor,” one broker said, citing weakness in regional stock markets.