Seoul: Shares fall as Snap sell-off stokes growth concerns

SOUTH Korean shares fell on Tuesday (May 24) as fresh Chinese stimulus failed to lift investor sentiment after a sell-off in Snap raised concerns about how businesses would handle a global economic slowdown. The won and the benchmark bond yield fell.

The benchmark Kospi fell 41.51 points, or 1.57 per cent, to close at 2,605.87 as of 6.30 GMT.

Among the heavyweights, technology giant Samsung Electronics and peer SK Hynix fell 2.06 per cent and 3.98 per cent, respectively, while battery maker LG Energy Solution rose 0.11 per cent.

After ending Monday firmer, Nasdaq futures lost 1.4 per cent, with traders blaming an earnings warning from Snap which the Snapchat owner’s shares tumble 28 per cent.

China will take a number of steps to support the economy, including broadening tax credit rebates and postponing social security payments, among others, the official Xinhua news agency quoted the cabinet as saying on Monday.

A key measure of inflation expectations among South Koreans rose in May for a fourth consecutive month to its highest in nearly a decade, a central bank survey found.

Foreigners were net sellers of 324.5 billion won (S$352.8 million) worth of shares.

The won was quoted at 1,266.2 per dollar on the onshore settlement platform, 0.17 per cent lower than Monday.

In offshore trading, the won was quoted at 1,265.4 per dollar, down 0.6 per cent from the previous day, while in non-deliverable forward trading, its 1-month contract was at 1,265.2.

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The Kospi has fallen 12.49 per cent so far this year, but lost 2 per cent in the previous 30 trading sessions.

In money and debt markets, June futures on 3-year treasury bonds rose 0.17 point to 105.61.

The most liquid 3-year Korean treasury bond yield fell by 4.9 basis points to 2.969 per cent, while the benchmark 10-year yield fell by 3.9 basis points to 3.218 per cent. REUTERS