Seoul: Stocks end at 1-month low as tech shares, China data weigh

[SEOUL] South Korean shares hit their lowest close in a month on Wednesday (Nov 10), as major tech heavyweights tracked a sharp decline in Tesla and as inflation data from China stoked fears of policy tightening. The won weakened and the benchmark bond yield fell.

The benchmark Kospi ended down 32.29 points or 1.09 per cent at 2,930.17, marking the lowest close since Oct 12.

Tesla suffered its sharpest share price fall in 14 months on Tuesday (Nov 9) as investors dumped the high-flying stock ahead of a possible stake sale by company chief Elon Musk.

Chip giants Samsung Electronics and SK Hynix fell 0.43 per cent and 0.46 per cent, respectively, while battery maker LG Chem and carmaker Hyundai Motor fell 3.90 per cent and 2.11 per cent each.

Foreigners were net sellers of 20.7 billion won (S$23.6 million) worth of shares on the main board.

Data from China that showed its factory gate inflation hit a 26-year high in October on soaring coal prices added to worries that a hot US inflation reading, due later on Wednesday, could renew pressure on policymakers to lift interest rates.

The won ended trading at 1,180.9 per dollar on the onshore settlement platform, 0.31 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,180.9 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,181.6.

In money and debt markets, December futures on 3-year treasury bonds rose 0.01 point to 108.78.

The most liquid 3-year Korean treasury bond yield rose by 0.2 basis point to 1.867 per cent, while the benchmark 10-year yield fell by 0.2 basis point to 2.292 per cent.

REUTERS