Seoul: Stocks end lower after Russia launches attack on Ukraine

[SEOUL] South Korean shares closed lower on Thursday (Feb 24), marking their worst day in a month, as investors dumped equities after Russian troops fired missiles at several Ukrainian cities. The won fell to a 3-week low, and the benchmark bond yield fell.

The benchmark Kospi ended down 70.73 points, or 2.6 per cent, at 2,648.80 - logging the sharpest decline since Jan 27.

It has fallen 11.04 per cent so far this year.

Leading the decline, chip giants Samsung Electronics and SK Hynix fell 2.05 per cent and 4.67 per cent, respectively, while battery maker LG Energy Solution dropped 5.77 per cent.

Russian forces fired missiles at several cities in Ukraine and landed troops on its coast, shortly after President Vladimir Putin authorised a military operation in the east.

Meanwhile, the Bank of Korea kept interest rates steady but significantly raised its inflation forecasts and signalled that it may need a quicker pace of tightening should price pressures build further due to the Ukraine crisis.

Foreigners were net sellers of 681.1 billion won (S$766.1 million) worth of shares on the main board.

The won ended at 1,202.4 per dollar on the onshore settlement platform, the weakest since Feb 3 and 0.73 per cent lower - the sharpest decline in over 2 months - than its previous close.

In offshore trading, the won was quoted at 1,202.1, while in non-deliverable forward trading its 1-month contract was quoted at 1,202.5.

In money and debt markets, March futures on 3-year treasury bonds rose 0.31 point to 108.04.

The most liquid 3-year Korean treasury bond yield fell by 8.9 basis points to 2.231 per cent, while the benchmark 10-year yield fell by 9.7 basis points to 2.627 per cent. REUTERS