Seoul: Shares hit near two-week low; US policymakers remarks in focus

[SEOUL] South Korean shares ended lower for a third straight session on Tuesday, as investors awaited fresh comments from top US policymakers and the US Treasury auctions. Both the won and the benchmark bond yield fell.

The Kospi ended down 30.72 points or 1.01 per cent at 3,004.74, its lowest closing since March 11. It ended 0.13 per cent lower on Monday.

Chip giants Samsung Electronics and SK Hynix fell 0.24 per cent and 2.17 per cent each, towing benchmark declines, while battery maker LG Chem and internet giant Naver tumbled 3.73 per cent and 2.65 per cent, respectively.

The 10-year US bond yields eased to 1.684 per cent after peaking at 1.754 per cent on Thursday, but market's immediate focus is on the Congressional testimony by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day.

Demand for US Treasuries will be tested this week as US$183 billion of notes are due to be auctioned, with one seven-year note sale likely to be closely watched after an auction of that maturity stumbled last month.

"Eyes are on sales of two-year notes later in the day ... and remarks from Fed officials over bond yields and inflation," said Kiwoom Securities' analyst Seo Sang-young.

Foreigners were net sellers of 477.6 billion won (S$567.6 million) worth of shares on the main board.

The won ended at 1,129.7 per dollar on the onshore settlement platform, 0.12 per cent lower than its previous close at 1,128.4.

In offshore trading, the won was quoted at 1,128.8, while in non-deliverable forward trading its one-month contract was quoted at 1,128.9.

The most liquid three-year Korean treasury bond yield fell by 0.1 basis point to 1.129 per cent, while the benchmark 10-year yield fell by 2.7 basis points to 2.031 per cent.

REUTERS