Seoul: Shares close lower on worries over volatile US bond yields

[SEOUL] South Korean shares fell on Monday as concerns over volatile US bond yields and heightened Sino-US tensions outweighed upbeat domestic trade data. The won gained, while the benchmark bond yield fell.

The benchmark Kospi closed down 4.07 points or 0.13 per cent at 3,035.46, having fallen as much as 0.66 per cent to its lowest intraday level since March 11. It ended 0.86 per cent lower on Friday.

Among heavyweights, technology giant Samsung Electronics rose 0.12 per cent, while battery maker LG Chem and internet giant Naver fell 3.01 per cent and 1.37 per cent, respectively.

Investors appeared to have shrugged off preliminary data that showed the country's exports during March 1-20 period jumped 12.5 per cent year-on-year.

Benchmark US 10-year Treasury yields edged down to 1.68 per cent following Friday's spike after the Federal Reserve's announced it would lift bank leverage exemption.

However, several bond managers say the recent pace of the rise in yields has been unsettling and worry the market could be viewed as disorderly if the momentum continues.

US and Chinese officials concluded a two-day meeting on Friday what Washington called "tough and direct" talks in Alaska that laid bare the depth of tensions between the two economies at the outset of the Biden administration.

Foreigners were net sellers of 546.3 billion won (S$649.5 million) worth of shares on the main board.

The won ended at 1,128.4 per dollar on the onshore settlement platform, 0.19 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,128.7, while in non-deliverable forward trading its one-month contract was quoted at 1,128.4.

The most liquid three-year Korean treasury bond yield fell by 0.5 basis point to 1.141 per cent, while the benchmark 10-year yield fell by 2.9 basis points to 2.069 per cent.

REUTERS