SEOUL — South Korea's stock market recorded a sharp decline for the fourth consecutive day on Friday, as worries over a potential U.S. recession influenced investor sentiment. The Korea Composite Stock Price Index (KOSPI) dropped 31.22 points, or 1.21 percent, closing at 2,544.28.

According to Yonhap News Agency, trading volume was robust with 368.9 million shares traded, totaling 8.5 trillion won (approximately US$6.4 billion). The market dynamics showed a broader selling trend, with 760 stocks declining against 139 gainers. Foreign investors continued their sell-off, marking the fourth session of net selling by offloading 265.3 billion won worth of shares. Conversely, retail investors purchased a net 170 billion won, maintaining their position as net buyers for the fifth straight session, while institutional investors added a net 83.7 billion won to their portfolios.

The downturn began earlier in the week following a disappointing U.S. manufacturing purchasing managers index report, which heightened fears of an impending recession in the United States. Han Ji-young, an analyst at Kiwoom Securities, pointed out that the anticipation of upcoming U.S. employment data also played a significant role in dampening investor enthusiasm. "Concerns over the U.S. jobs data to be released overnight, in addition to existing uncertainties, appear to have affected investor sentiments," Han explained.

Large-cap stocks generally performed poorly, with major companies like Samsung Electronics and SK Hynix seeing declines of 0.14 percent and 1.88 percent, respectively. However, Celltrion, a leading pharmaceutical firm, bucked the trend with a 1.70 percent rise. Other significant losses were noted in key sectors, with LG Chem and LG Energy Solution experiencing declines of 3.11 percent and 3.66 percent, respectively, and Samsung SDS dropping 4.30 percent.

The local currency, the won, appreciated against the U.S. dollar, closing at 1,327.6 won, up by 8.3 won from the previous session. In the bond market, prices rose as yields, which move inversely to prices, decreased. The yield on three-year Treasurys fell 2.4 basis points to 2.881 percent, and the yield on five-year government bonds decreased by 3.9 basis points to 2.932 percent.