Seoul: Shares fall as China Covid woes offset upbeat US data
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SOUTH Korean shares fell on Monday (Jul 11), as sentiment weakened on China’s latest Covid-19 flare-ups while investors also maintained a cautious stance ahead of major economic data this week. The Korean won weakened and the benchmark bond yield rose.
The benchmark Kospi ended down 10.34 points, or 0.44 per cent, at 2,340.27.
US employment data came in stronger than expected and eased some worries about a steep recession, but the local market tracked weak China stocks to shed early gains, said Bookook Securities’ analyst Lee Won.
Market sentiment was largely cautious as investors also awaited data on US inflation and China’s major economic indicators such as exports due later the week.
Meanwhile, South Korea’s central bank is expected to deliver its first 50-basis-point rate hike to 2.25 per cent on Wednesday, according to a Reuters poll.
Among heavyweights, technology giant Samsung Electronics inched up 0.17 per cent, but peer SK Hynix fell 1.16 per cent. Battery maker LG Energy Solution rose 1.80 per cent.
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Shares of Covid vaccine maker SK Bioscience jumped 4.64 per cent to the highest since early-April amid signs of a new wave of infections.
But advancing shares accounted for less than a third of 928 total traded issues on the benchmark Kospi.
Foreigners were net sellers of 17.2 billion won (S$18.5 million) worth of shares on the main board.
The won was last quoted at 1,303.9 per US dollar on the onshore settlement platform, 0.27 per cent lower than its previous close.
In offshore trading, the won was quoted down 0.7 per cent at 1,303.7 per US dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,303.2.
In money and debt markets, September futures on 3-year treasury bonds fell 0.01 point to 104.42 in late afternoon trade.
The most liquid 3-year Korean treasury bond yield rose 1.6 basis points to 3.331 per cent, while the benchmark 10-year yield climbed 3.4 basis points to 3.399 per cent. REUTERS
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