Seoul: Stocks end 1% lower on rising bond yields

[SEOUL] South Korean shares reversed course to end 1 per cent lower on Monday as the passage of a massive US stimulus package and upbeat economic data globally drove bond yields higher.

The benchmark Kospi closed down 30.15 points, or 1.00 per cent, at 2,996.11, after rising as much as 0.97 per cent in early trade.

The US Senate on Saturday passed President Joe Biden's US$1.9 trillion CoviD-19 relief plan, a day after data showed that the US economy created more jobs than expected in February.

Meanwhile, China's February trade data released on Sunday showed that exports grew at a record pace last month, further signalling a recovery in the world's second-largest economy.

"Strong economic data and hopes of (US) stimulus implementation not only led to expectations that the pace of economic recovery would accelerate, but also put further pressure on rising interest rates," said Daishin Securities' analyst Lee Kyoung-min.

Foreigners were net sellers of US$110.93 million worth of shares on the main board.

REUTERS