South Korea’s benchmark KOSPI was down 1.5 percent at 4,104.44, while the tech-heavy KOSDAQ slipped 0.2 percent to 935.61 as of 10 a.m.
Only seven of the 30 largest companies by market capitalization on the main board posted gains. Samsung Electronics fell 3.4 percent to 105,200 won ($71.2), and SK hynix slid 3.2 percent to 553,000 won. Hyundai Motor lost 1.8 percent to 296,000 won, while HD Hyundai Heavy Industries declined 3.1 percent to 555,000 won. Doosan Enerbility sank 3.4 percent to 77,000 won, Kia retreated 1.2 percent to 124,300 won, KB Financial slipped 0.8 percent to 125,100 won, and Hanwha Aerospace lost 3.8 percent to 925,000 won.
Among gainers, LG Energy Solution edged up 0.2 percent to 446,500 won, while Samsung Biologics jumped 4.2 percent to 1,763,000 won.
Korea Zinc, ranked 20th by market capitalization, was the biggest riser among the top 100 KOSPI stocks, surging 10.6 percent to 1,679,000 won. Local media attributed the rally to reports that the firm plans to build a 10 trillion-won ($6.77 billion) smelter in the United States, with more than 1 trillion won in combined investments from the U.S. government and private companies.
Shares of the “Big Four” K-pop agencies all fell more than 1 percent. Hybe dropped 1.3 percent to 295,500 won, JYP Entertainment slid 1.3 percent to 67,300 won, SM Entertainment fell 2.1 percent to 101,600 won, and YG Entertainment declined 2.4 percent to 62,100 won.
From Monday, the Korea Exchange (KRX) will temporarily lower its stock trading fees for two months, until Feb. 13 next year. The fee for limit orders will be set at 0.00134 percent and the fee for market orders at 0.00182 percent, representing a reduction of about 20 percent to 40 percent from current rates.
The move is widely seen as an effort to align the KRX’s fee structure with that of Nextrade (NXT), which charges 0.00134 percent for limit orders and 0.00182 percent for market orders. Launched on March 4, Nextrade is South Korea’s first alternative trading system (ATS) and the only competitor to the Korea Exchange.
Within three quarters of its launch, Nextrade posted its first cumulative operating profit. As of the end of October, its average daily trading volume over the previous six months reached 15.66 percent of the KRX’s average daily volume over the same period, surpassing the so-called “15 percent rule.”
While the Korea Exchange can decide on short-term fee adjustments or exemptions of up to three months on its own, extending such measures beyond that period requires a review by the Financial Services Commission.
In Japan, the Nikkei 225 fell 1.3 percent to 50,183.19. Toyota Motor rose 1.9 percent to 3,321 yen ($21.4), while Mitsubishi UFJ Financial Group gained 1.2 percent to 2,528.5 yen. SoftBank Group, the fourth-largest stock by market value, tumbled 7.2 percent to 16,600 yen.
The Nikkei newspaper reported on Sunday that in the Kansai region, where economic ties with China are strong, bus tours and hotel reservations have been canceled in succession, hurting department store sales. It added that concerns are also spreading to the Tohoku and Hokkaido tourism sectors as the situation appears likely to drag on.
The ongoing Japan-China spat has led to fewer Chinese tourists, though some analysts say the disruption could benefit Japan’s tourism industry in the long run. Teikoku Databank said the impact of travel advisories remains limited and could present an opportunity to tap alternative sources of demand.
In China, the Shanghai Composite Index edged down 0.2 percent to 3,881.72, while Hong Kong’s Hang Seng Index fell 0.9 percent to 25,754.06.
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