Seoul: Shares post sharpest decline in a month ahead of US inflation data

SOUTH Korean shares posted their sharpest fall in nearly a month on Wednesday (Aug 10), following Wall Street’s retreat overnight as investors awaited US inflation data to gauge the pace of the Federal Reserve’s interest rate hikes. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi fell 22.58 points or 0.90 per cent to close at 2,480.88 as of 6.30 am GMT, its biggest decline since Jul 12.

Among the heavyweights, technology giant Samsung Electronics fell 1.50 per cent and peer SK Hynix fell 3.47 per cent, while battery maker LG Energy Solution rose 0.11 per cent.

Tech stocks tracked declines in US peers’ shares overnight, amid cautious ahead of US inflation data, said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Foreigners were net sellers of shares worth 102.2 billion won (S$107.5 million) on the main board.

The won was quoted at 1,310.4 per dollar on the onshore settlement platform, 0.44 per cent lower than its previous close at 1,304.6.

In offshore trading, the won was quoted at 1,310.3 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,309.7.

The Kospi has fallen 16.68 per cent so far this year, but gained 3.4 per cent in the previous 30 trading sessions.

The trading volume during the session was 471.73 million shares. Of the total 929 traded issues, only 301 rose.

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Tokyo: Stocks close lower on Wednesday

Asia: Markets drop on rate worries ahead of inflation data

The won has lost 9.3 per cent against the dollar so far this year.

In money and debt markets, September futures on 3-year treasury bonds fell 0.11 point to 105.15.

The most liquid 3-year Korean treasury bond yield rose by 2.6 basis points to 3.161 per cent, while the benchmark 10-year yield rose by 4.5 basis points to 3.213 per cent. REUTERS