Seoul: S Korean stocks post sharpest weekly decline in 3 weeks on supply disruptions

[SEOUL] South Korean shares posted the sharpest weekly decline in 3 weeks after ending more than 1 per cent lower on Friday, as weak economic data and recent earnings at home and abroad pointed to supply chain woes that may further weigh on the economy.

The won edged up, while the benchmark 10-year treasury bond yield surged to its highest in over 3 years.

The Kospi ended down 38.87 points, or 1.29 per cent, at 2,970.68, extending the declines to a third straight day and logging the sharpest decline since Oct 12.

For the week, it fell 1.18 per cent, marking the fastest decline in 3 weeks after having lost 0.30 per cent a week earlier.

Among the heavyweights, chip giants Samsung Electronics and SK Hynix tumbled 1.27 per cent and 3.29 per cent, respectively, while battery maker LG Chem dropped 1.65 per cent.

The country's factory output snapped 10 straight months of year-on-year growth in September, as global chip shortages hit production.

The issue was highlighted in major corporate earnings at home, with Samsung Electronics and Hyundai Motor warning that the impact will affect manufacturers for the time being.

REUTERS