Seoul: Stocks end lower on record virus cases, US inflation data

[SEOUL] South Korean shares ended lower on Wednesday, as the biggest jump in US inflation in 13 years spurred bets of a earlier-than-expected monetary policy tightening, while daily Covid-19 cases at home hitting a record high also weighed on sentiment. Both the won and the benchmark bond yield fell.

The Kospi closed down 6.57 points or 0.20 per cent at 3,264.81, snapping two straight days of gains. The benchmark index fell as much 0.64 per cent in early trade.

The US consumer price index (CPI) increased 0.9 per cent last month, the largest gain since June 2008, amid supply constraints and as the economic recovery gathered momentum. In the 12 months through June, the CPI jumped 5.4 per cent - the largest gain since August 2008.

Further weighing on sentiment, South Korea reported 1,615 new coronavirus cases as of Tuesday midnight, a record high that breaks the previous peak set last week.

Among the heavyweights, technology giant Samsung Electronics fell 0.38 per cent, while peer SK Hynix added 0.41 per cent. Internet giant Naver rose 0.68 per cent.

Foreigners were net sellers of 272.9 billion won (S$321.9 million) worth of shares on the main board.

The won ended at 1,148.5 per dollar on the onshore settlement platform, 0.27 per cent lower than its previous close at 1,145.4.

In offshore trading, the won was quoted at 1,147.9 per dollar, up 0.2 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,148.3.

In money and debt markets, September futures on three-year treasury bonds rose 0.10 point to 110.30.

The most liquid three-year Korean treasury bond yield fell by 3.1 basis points to 1.393 per cent, while the benchmark 10-year yield fell by 2.3 basis points to 2.012 per cent.

REUTERS