Seoul: Stocks clock worst week in seven months on virus, Fed taper fears

[SEOUL] South Korean shares tumbled more than 1 per cent on Friday and posted their worst weekly decline in seven months, underpinned by persistent worries over the Delta coronavirus variant and prospects of an early tapering by the US Federal Reserve. The won and the benchmark bond yield fell.

The Kospi ended down 37.32 points or 1.20 per cent at 3,060.51, the lowest close since March 29. It declined 3.49 per cent on a weekly basis, the worst since late January, and after falling 3.03 per cent in the previous week.

Technology giant Samsung Electronics fell 0.55 per cent, leading the benchmark decline, while internet giant Naver and mobile messenger app operator Kakao slid 0.47 per cent and 1.71 per cent, respectively.

Foreigners were net sellers of 256.8 billion won (S$295.9 million) worth of shares on the main board.

South Korea has extended its social distancing curbs for two weeks, while tightening some measures further, as it continued to report near-record daily cases.

Investors remained on the sidelines after the US Federal Reserve July meeting minutes suggested it could ease stimulus this year if the economy continues to improve.

The won ended at 1,179.6 per dollar on the onshore settlement platform, 0.29 per cent lower than its previous close at 1,176.2.

It fell 0.90 per cent for the week, following a 2.30 per cent loss a week earlier.

In offshore trading, the won was quoted at 1,181.7 per dollar, down 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,182.

In money and debt markets, September futures on three-year treasury bonds rose 0.03 point to 110.57.

The benchmark 10-year yield fell by 1.6 basis points to 1.852 per cent.

REUTERS