Seoul: Shares end 3-day rally as BOK raises rates; Jackson Hole in focus

[SEOUL] South Korean shares snapped a three-session rally on Thursday, after the country's central bank raised its policy rate from a record low and on caution ahead of the Federal Reserve's Jackson Hole symposium. The won weakened, while the benchmark bond yield fell.

The Kospi ended down 18.28 points, or 0.58 per cent, at 3,128.53, reversing the 0.27 per cent gain it clocked a day ago.

Technology giant Samsung Electronics fell 1.45 per cent, leading the declines on the benchmark, while internet giant Naver and biopharmaceutical firm Samsung Biologics shed 1.63 per cent and 0.93 per cent, respectively.

The Bank of Korea raised its policy rate for the first time in almost three years, becoming the first major Asian central bank to shift away from pandemic-era monetary settings as surging household debt created new threats for the economy.

The BOK's move comes a day before Federal Reserve Chairman Jerome Powell delivers his keynote address at the US central bank's annual Jackson Hole symposium, where he is expected to signal the future direction of US monetary policy.

South Korea reported 20 Covid-19 deaths for Wednesday, the highest daily count this year, along with 1,882 new infections.

Foreigners were net sellers of US$310.82 million worth of shares on the main board.

REUTERS