Seoul: Stocks dip ahead of Fed decision

[SEOUL] South Korean shares fell on Wednesday (Nov 3) as traders braced for a likely US Federal Reserve policy decision to taper its pandemic-era stimulus. The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi fell 37.78 points or 1.25 per cent to 2,975.71, as of 6.30 am GMT.

Trading was thin as many were in a wait-and-see mode ahead of the Federal Open Market Committee decision, while the spread of Covid-19 in China also weakened sentiment, said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Among heavyweights, technology giant Samsung Electronics fell 1.54 per cent and peer SK Hynix slipped 1.86 per cent, while LG Chem dropped 5.66 per cent and Naver declined 1.83 per cent.

Kakao Pay saw its shares double in value from their IPO price on their trading debut, as the fintech's expected growth in transactions and other services whetted investor appetite.

China stocks fell as risk appetite took a hit after Premier Li Keqiang warned of economic downward pressure while new locally transmitted Covid-19 cases spiked to a near 3-month high, lifting the prospect of fresh curbs in Beijing.

Foreigners were net sellers of 448.7 billion won (S$512.5 million) worth of shares on the main board.

The won was quoted at 1,181.6 per dollar on the onshore settlement platform, 0.61 per cent lower than its previous close at 1,174.4.

In offshore trading, the won was quoted at 1,181.5 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,182.6.

The won has lost 8.1 per cent against the dollar so far this year.

In money and debt markets, December futures on 3-year treasury bonds fell 0.01 point to 108.17.

The most liquid 3-year Korean treasury bond yield fell by 0.4 basis point to 2.036 per cent, while the benchmark 10-year yield fell by 1.1 basis points to 2.469 per cent.

REUTERS