Seoul: Shares decline for fifth session on China market volatility worries

[SEOUL] South Korean shares closed lower for a fifth straight session on Wednesday, as uncertainties around volatile Chinese markets spooked investors even after the tech-heavy Nasdaq index rebounded overnight. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi fell 18 points or 0.60 per cent to 2,958.12 as of 6.30am GMT.

Among the heavyweights, technology giant Samsung Electronics fell 0.61 per cent and peer SK Hynix fell 2.56 per cent, while LG Chem rose 3.48 per cent and Naver rose 2.90 per cent.

There are doubts about whether a rout in China will stabilise, especially as Chinese inflation and producer prices exceeded expectations, said Lee Kyoung-min, an analyst at Daishin Securities.

Foreigners were net sellers of 11.3 billion won (S$13.3 million) worth of shares on the main board.

The won was quoted at 1,142.7 per dollar on the onshore settlement platform, 0.21 per cent lower than its previous close at 1,140.3.

In offshore trading, the won was quoted at 1,140.7 per dollar, down 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,140.8.

The Kospi has risen 2.95 per cent so far this year, and lost 5.8 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 887.07 million shares. Of the total traded issues of 910, the number of advancing shares was 257.

The won has lost 4.9 per cent against the dollar so far this year.

In money and debt markets, March futures on three-year treasury bonds rose 0.15 point to 111.08.

The most liquid three-year Korean treasury bond yield fell by 2.1 basis points to 1.183 per cent, while the benchmark 10-year yield rose by 0.2 basis point to 2.037 per cent.

REUTERS