Seoul: Shares end 1% lower on global growth concerns

SOUTH Korean shares fell 1 per cent on Tuesday (Jul 12), hit by global growth concerns stemming from China’s rising Covid-19 cases and Europe’s energy struggles. The won touched a more than 13-year low, while the benchmark bond yield fell.

The benchmark Kospi ended down 22.51 points or 0.96 per cent at 2,317.76.

The broader Asian market was subdued, as multiple Chinese cities imposed fresh Covid-19 curbs to control new infections, while a possibility of a Russia-Europe gas pipeline shutting down for a longer period also weighed on sentiment.

Investors were also cautious ahead of US inflation data on Wednesday, said Daishin Securities analyst Lee Kyoung-min, while hoping the market to take some burden off if the numbers meet estimates.

Domestically, focus will be on the Bank of Korea’s monetary policy meeting during the day to see if the central bank will deliver its first-ever 50-basis-point rate hike.

Among the heavyweights, technology giant Samsung Electronics fell 1.19 per cent and peer SK Hynix lost 0.43 per cent, but battery maker LG Energy Solution rose 1.52 per cent.

Of the total 928 traded issues on Kospi, only 129 shares gained.

Foreigners were net sellers of shares worth 44.3 billion won (S$47.5 million) on the main board.

The won ended down 0.62 per cent at 1,312.1 per dollar on the onshore settlement platform, after touching the lowest since Apr 30, 2009 at 1316.4.

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Seoul: Shares fall as China Covid woes offset upbeat US data

In offshore trading, the won was quoted down 0.1 per cent at 1,312 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,311.8.

In money and debt markets, September futures on 3-year treasury bonds rose 0.08 point to 104.55.

The most liquid 3-year Korean treasury bond yield fell by 2.8 basis points to 3.296 per cent, while the benchmark 10-year yield fell by 3.3 basis points to 3.352 per cent. REUTERS