Seoul: Shares fall on US stimulus doubts, virus worries

[SEOUL] South Korean shares slid on Thursday after gaining 2 per cent in the previous session, as stalled US stimulus talks and rising coronavirus cases at home weighed on sentiment. Both the won and the benchmark bond yield fell.

The benchmark Kospi closed down 9.01 points or 0.33 per cent at 2,746.46, after posting a record closing high on Wednesday.

The US House of Representatives on Wednesday approved a one-week extension of federal government funding, giving lawmakers more time to haggle over a broader spending package with coronavirus relief.

South Korea reported 682 new coronavirus cases on Thursday as it continues to battle a third wave of infection that is threatening the economy and healthcare system.

Samsung Electronics and SK Hynix, the world's two largest memory chipmakers, slid 1.4 per cent and 3.3 per cent, respectively, leading the decline. Both stocks had hit record highs in the previous session.

Foreigners were net sellers of 1.36 trillion won (S$1.67 billion) worth of shares on the main board.

"Kospi dropped as foreign investors and institutions were net sellers in relation to the expiry of Kospi futures and options contracts," NH Investment & Securities analyst Noh Dong-kil said.

The won ended at 1,087.7 per US dollar on the onshore settlement platform, 0.27 per cent lower than its previous close at 1,084.8.

In offshore trading, the won was quoted at 1,087.2 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,086.9.

In money and debt markets, December futures on three-year treasury bonds rose 0.02 point to 111.72.

The most liquid three-year Korean treasury bond yield was flat at 0.975 per cent, while the benchmark 10-year yield fell by 0.4 basis point to 1.655 per cent.

REUTERS