Seoul: Stocks end at 11-month low on Omicron variant fears

[SEOUL] South Korean shares closed at their lowest level in 11 months on Tuesday (Nov 30), as warnings by Moderna Inc chief on Omicron coronavirus variant spooked investors and fuelled a broad sell-off. The won gained, while the benchmark bond yield fell.

The KOSPI ended down 70.31 points, or 2.42 per cent, at 2,839.01, its lowest close since Dec 29, 2020. The index extended losses to a sixth session.

The index dropped 4.43 per cent for the month, marking its worst month since March 2020.

Among heavyweights, chip giants Samsung Electronics and SK Hynix fell 1.38 per cent and 1.72 per cent, respectively, while LG Chem dropped 2.53 per cent.

Drugmaker Moderna set off fresh alarm bells in financial markets as the firm's chief warned that Covid-19 vaccines are unlikely to be as effective against the Omicron variant as they have been against the Delta version.

South Korea reported 3,032 new coronavirus cases for Monday (Nov 29), but so far there were no Omicron cases being reported.

Meanwhile, data showed South Korea's factory output in October shrank at its sharpest pace in nearly 1-1/2 years as auto chip shortages continued to weigh on production.

On the main board, foreigners were net sellers of 138.3 billion won (S$159.1 million) worth of shares.

The won ended at 1,187.9 per dollar on the onshore settlement platform, 0.43 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,189.2, while in non-deliverable forward trading its 1-month contract was quoted at 1,189.3.

In money and debt markets, December futures on 3-year treasury bonds rose 0.14 point to 109.09.

The most liquid 3-year Korean treasury bond yield fell by 3.5 basis points to 1.806 per cent, while the benchmark 10-year yield fell by 4.5 basis points to 2.22 per cent.

REUTERS