Seoul: Shares fall after Fed rate hike; battery makers jump

SOUTH Korean shares fell on Thursday (Nov 3) as investors found US Federal Reserve (Fed) chair Jerome Powell’s comments hawkish after a fourth straight 75-basis-point rate hike, but losses were capped by battery manufacturers on solid earnings.

The South Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi fell 7.7 points or 0.33 per cent to close at 2,329.17. The index ended three straight sessions of gains that had sent it to a six-week high on Tuesday.

The index briefly traded in positive territory after falling as much as 1.73 per cent in early trade.

Powell said on Wednesday it was “very premature” to discuss when the Fed might pause its rate hikes.

“Losses were capped by battery makers, which rose on robust earnings and hopes for larger shares in the global market,” said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Among heavyweights, technology giant Samsung Electronics fell 0.67 per cent and peer SK Hynix lost 2.13 per cent, while tech platform operators Naver and Kakao dropped 2.87 per cent and 4.21 per cent, respectively.

More than two thirds of shares fell. Among gainers, battery maker LG Energy Solution rose 3.51 per cent and its parent LG Chem advanced 1.64 per cent, while peers Samsung SDI and SK Innovation climbed 1.93 per cent and 3.27 per cent, respectively.

Foreigners were net buyers of shares worth 174.7 billion won (S$174.3 million) on the main board, extending their buying streak to a fourth session.

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The won was last quoted at 1,423.8 per dollar on the onshore settlement platform, 0.45% lower than its previous close.

In money and debt markets, December futures on three-year treasury bonds fell 0.26 point to 102.09.

The most liquid three-year South Korean treasury bond yield rose by 6.5 basis points to 4.172%, while the benchmark 10-year yield rose by 5.3 basis points to 4.203%. REUTERS