Seoul: Shares, won fall ahead of US jobs data

SOUTH Korean shares fell on Friday (Sep 2) to post their biggest weekly loss in more than 2 months, as caution prevailed ahead of key US employment data. The Korean won touched a more than 13-year low, while the benchmark bond yield fell.

The Kospi ended down 6.2 points or 0.26 per cent at 2,409.41, its lowest close since Jul 25, after swinging between positive and negative territories.

The benchmark index ended the week down 2.89 per cent, marking its third consecutive loss and the biggest in 10 weeks.

Investor caution heightened ahead of the US employment report, which may come in weaker than expected but should not be too weak to trigger recession fears, said Seo Sang-young, an analyst at Mirae Asset Securities.

Meanwhile, South Korea’s main inflation rate slowed in August for the first time in 7 months and came in below forecasts, but details of the price data released on Friday reinforced views inflation would stay elevated for a while.

Among heavyweights, technology giant Samsung Electronics fell 1.54 per cent and peer SK Hynix lost 0.76 per cent, but battery maker LG Energy Solution jumped 4.1 per cent to its highest close since Feb 11.

Foreigners were net sellers of shares worth 173.3 billion won (S$178.3 million) on the main board. For the week, they net bought 183.8 billion won, extending their buying streak to a ninth week.

The won ended 0.57 per cent lower at 1,362.6 per dollar on the onshore settlement platform, after touching its weakest since Apr 21, 2009 at 1,363.

The currency weakened 2.3 per cent against the dollar this week, the biggest since mid-August 2021.

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In money and debt markets, September futures on 3-year treasury bonds rose 0.36 point to 103.54 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 7.7 basis points to 3.699 per cent, while the benchmark 10-year yield fell by 4.3 basis points to 3.756 per cent. REUTERS