Seoul: Stocks end at one-month low on tech sell-off, China power crisis

[SEOUL] South Korean shares ended weaker on Wednesday after hitting a six-month intraday low on a broad sell-off in tech heavyweights and amid concerns over the widening power crunch in China. The won and the benchmark bond yield strengthened.

The Kospi closed down 37.65 points or 1.22 per cent at 3,060.27, after skidding as much as 2.17 per cent to its lowest since March 29 earlier in the session. The index closed 1.14 per cent lower on Tuesday.

Chip giants led the losses in the benchmark, with Samsung Electronics and SK Hynix falling 2.88 per cent and 3.38 per cent, respectively, on downbeat chip outlook by Micron Technology.

Platform companies Naver and Kakao fell 1.40 per cent and 0.85 per cent, respectively.

All three major US stock indices closed sharply lower on Tuesday, with interest rate-sensitive tech and tech-adjacent stocks weighing the heaviest.

China's power supply crunch, that has shut factories across the country, may pose a much bigger threat to the economy than the debt crisis at Evergrande Group.

South Korean exports likely expanded in September for an 11th straight month, a Reuters poll showed on Wednesday, buoyed by a sales boost in key items despite fewer working days and a fading base effect from last year's trade slump.

Foreigners were net sellers of 657.9 billion won (S$754.5 million) worth of shares on the main board.

The won ended at 1,181.8 per dollar on the onshore settlement platform, 0.22 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,182.6 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,183.2.

In money and debt markets, December futures on three-year treasury bonds rose 0.06 point to 109.35.

The most liquid three-year Korean treasury bond yield rose by 0.2 basis point to 1.611 per cent.

REUTERS