Seoul: Shares fall on Sino-US tensions

SOUTH Korean shares snapped a six-session gaining streak on Tuesday (Aug 2) and retreated from a 7-week high hit in the previous session as risk-off sentiment spread across Asian markets over Sino-US tensions. The won was flat, while the benchmark bond yield dropped.

The benchmark Kospi ended down 12.63 points or 0.52 per cent at 2,439.62.

The US House Representatives Speaker Nancy Pelosi was set to visit Taiwan on Tuesday, inducing China’s military activities as a response and a sell-off of risky assets across Asian markets, especially China.

Worries of worsening Sino-US tensions resurfaced, providing a ground for the stock market’s correction following a strong rebound, said Daishin Securities analyst Lee Kyoung-min, who saw little possibility of the visit leading to actual military or economic conflicts.

South Korea’s consumer inflation sped up to an almost 24-year high in July, data showed, but other figures indicated the rate of price rises may be near a peak.

The Bank of Korea said it was in line with its projected path and expected the inflation to stay above 6 per cent for the time being.

Among the heavyweights, technology giant Samsung Electronics rose 0.65 per cent but peer SK Hynix fell 0.62 per cent while battery maker LG Energy Solution lost 0.6 per cent.

Foreigners were net buyers of shares worth 296.1 billion won (S$312.4 million) on the main board.

The won was quoted at 1,304.7 per dollar on the onshore settlement platform, 0.05 per cent lower than its previous close.

SEE ALSO

Seoul: Shares end subdued after mixed economic data

In offshore trading, the won was quoted up 0.1 per cent at 1,306.1 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,305.1.

In money and debt markets, September futures on 3-year treasury bonds added 0.28 point to 105.56 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 5.7 basis points to 3.024 per cent, while the benchmark 10-year yield fell by 9.3 basis points to 3.093 per cent. REUTERS