Seoul: Shares track Wall Street lower, won touches 1-month low

SOUTH Korean shares extended losses for a second session on Thursday (Aug 18) tracking Wall Street’s overnight weakness, although sharp gains in heavyweight Samsung Electronics capped losses. The won touched a 1-month low, while the benchmark bond yield rose.

The benchmark Kospi ended down 8.42 points or 0.33 per cent at 2,508.05, following a 0.67 per cent fall on Wednesday.

The US Fed officials saw “little evidence” last month that inflation pressures were easing, and steeled themselves to force the economy to slow down to control a surge in prices, according to Jul 26-27 policy meeting minutes.

The market underwent an uneasy session after the Fed’s meeting minutes that could be interpreted in 2 contrasting aspects of its strong will for price stabilisation and concerns over excessive tightening, said Lee Kyoung-min, analyst at Daishin Securities.

Among heavyweights, technology giant Samsung Electronics jumped 1.82 per cent, its best day in nearly a month but peer SK Hynix fell 1.44 per cent and battery maker LG Energy Solution lost 0.33 per cent.

Foreigners were net buyers of shares worth 310.2 billion won (S$324.2 million) on the main board.

The won was last quoted at 1,320.7 per dollar on the onshore settlement platform, 0.79 per cent lower than its previous close, after hitting its lowest since Jul 18 at 1,321.2.

In offshore trading, the won was quoted down 0.5 per cent at 1,321.2 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,320.8.

In money and debt markets, September futures on 3-year treasury bonds fell 0.12 point to 105.27 in late afternoon trade.

SEE ALSO

Europe: Stock markets mainly dip at open

Tokyo: Stocks close lower on Thursday

The most liquid 3-year Korean treasury bond yield rose by 4.5 basis points to 3.133 per cent, while the benchmark 10-year yield rose by 3.7 basis points to 3.227 per cent. REUTERS