Seoul: Stocks end 1% lower ahead of US jobs data; snaps four-day rally

[SEOUL] South Korean shares ended lower on Thursday, ending a four-day rally, as investors awaited a key US jobs data for clues on when the Federal Reserve might start reducing its pandemic-era stimulus. The won and the benchmark bond yield weakened.

The Kospi ended down 31.17 points or 0.97 per cent at 3,175.85, pulled down by tech heavyweights.

Chip giants Samsung Electronics and SK Hynix slumped 1.04 per cent and 1.39 per cent, respectively, while internet giant Naver and battery maker Samsung SDI fell 0.56 per cent and 4.82 per cent each.

KakaoBank, the country's biggest lender by market value, fell more than 8 per cent after local media reported that Korea Post, South Korea's No 2 pension fund, sold around one trillion won (S$1.16 billion) worth of stake in the company in a block trade on Wednesday.

Foreigners were net sellers of 382 billion won worth of shares on the main board.

Investors are awaiting US non-farm payrolls data, due on Friday, as Fed chair Jerome Powell said last week the jobs recovery would determine the timing of the asset purchase tapering.

Surveys this week showed Asian and European factory activity lost momentum last month as the pandemic disrupted supply chains.

Meanwhile, South Korea's August consumer inflation stayed at a nine-year peak, raising the chances the central bank will hike rates again this year as strong demand adds to price pressures.

The won ended at 1,161.5 per dollar on the onshore settlement platform, 0.37 per cent lower than its previous close at 1,157.2.

In offshore trading, the won was quoted at 1,161.3, while in non-deliverable forward trading its one-month contract was quoted at 1,161.

In money and debt markets, September futures on three-year treasury bonds fell 0.02 point to 110.47.

The benchmark 10-year yield fell by 0.5 basis point to 1.937 per cent.

REUTERS