Seoul: Stocks end at 2 1/2-week low on Ukraine crisis
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[SEOUL] South Korean shares ended on Tuesday (Feb 15) at their lowest levels in 2 1/2 weeks as investors fretted about a potential Russian invasion of Ukraine and amid caution over more aggressive interest rate hikes by the US Federal Reserve.
The Korean won weakened on higher demand for safe-havens assets, while the benchmark bond yield fell.
The benchmark Kospi closed down 27.94 points, or 1.03 per cent, at 2,676.54, the lowest since Jan 28. In the previous session, the index closed 1.57 per cent lower.
Among heavyweights, battery maker LG Energy Solution and chipmaker SK Hynix tumbled 4.15 per cent and 2.48 per cent, respectively, while platform company Naver slid 1.09 per cent.
Tensions in eastern Europe persisted, with Russian envoy to the European Union, Vladimir Chizhov, saying Russia will "respond" if its citizens start being killed anywhere, including in Ukraine's rebel Donbass region.
That comes hours after Ukraine President Volodymyr Zelenskiy called on citizens to fly the country's flags from buildings and sing the national anthem in unison on Feb 16, a date that some Western media have cited as a possible start of a Russian invasion.
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Elsewhere, hawkish Federal Reserve official James Bullard on Monday reiterated calls for a faster pace of interest rate hikes ahead of the March meeting.
"Risk appetite continued to dampen on escalating geopolitical tensions surrounding Ukraine amid caution over US monetary tightening," said Daishin Securities' analyst Lee Kyoung-min.
Foreigners were net sellers of 264.8 billion won (S$297.5 million) worth of shares on the main board.
The won closed at 1,199.8 per dollar on the onshore settlement platform, 0.73 per cent lower than its previous close.
In offshore trading, the won was quoted at 1,200, while in non-deliverable forward trading its 1-month contract was quoted at 1,200.3.
In money and debt markets, March futures on 3-year treasury bonds rose 0.08 point to 107.54.
The benchmark 10-year yield fell 0.2 basis point to 2.705 per cent. REUTERS
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