Seoul: Stocks end lower despite China's upbeat quarterly data

[SEOUL] South Korean shares closed slightly lower on Monday (Apr 18), as investors maintained a cautious stance despite stronger-than-expected quarterly economic data in China. The won weakened, while the benchmark bond yield hit a new 8-year high.

The benchmark Kospi ended 2.85 points or 0.11 per cent lower at 2,693.21.

China’s economy slowed in March as consumption, real estate and exports were hit hard, taking the shine off faster-than-expected first-quarter growth data and worsening an outlook already weakened by Covid-19 and the Ukraine war.

China marked a stronger growth in the first quarter than worried, but the prospect of further monetary easing also diminished, sending investors mixed signals, said Bookook Securities’ analyst Lee Won.

South Korea lifted almost all of its Covid-19 precautions in a major step towards a return to normal life.

The Bank of Korea’s chief nominee Rhee Chang-yong will testify at a parliamentary verification hearing on Tuesday.

Samsung Electronics rose 0.15 per cent and peer SK Hynix gained 0.93 per cent, while battery maker LG Energy Solution fell 0.46 per cent.

Foreigners were net sellers of 97.1 billion won (S$107.1 million) worth of shares on the main board, extending sell-offs to a ninth straight session.

The won closed at 1,234.4 per dollar on the onshore settlement platform, down 0.39 per cent.

In offshore trading, the won was quoted at 1,234.1 per dollar, down 0.5 per cent, while in non-deliverable forward trading, its 1-month contract was quoted at 1,234.3.

In money and debt markets, June futures on 3-year treasury bonds fell 0.07 point to 105.27 by late afternoon.

The most liquid 3-year Korean treasury bond yield rose 4.4 basis points to 2.985 per cent, while the benchmark 10-year yield rose by 6.4 basis points to 3.354 per cent after hitting the highest since May 2014. REUTERS