Seoul: Stocks end lower on Ukraine concerns, looming US rate hike

[SEOUL] South Korean shares ended lower on Monday (Mar 14), impacted by worries about the ongoing Russia-Ukraine crisis, while a widely expected US interest rate hike also dampened sentiment. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed down 15.63 points, or 0.59 per cent, at 2,645.65.

Leading declines among heavyweights, battery maker LG Energy Solution slumped 7.03 per cent, while chipmaker SK Hynix slid 0.85 per cent.

The Russia-Ukraine conflict continued to rage, with a barrage of Russian missiles hitting a large Ukrainian base near the border with Nato member Poland.

The US Deputy Secretary of State said on Sunday Russia was showing signs it might be willing to have substantive negotiations over Ukraine.

The Federal Open Market Committee is meeting this week, and is all but certain to begin hiking interest rates from their pandemic lows. The Bank of Japan and the Bank of England are also meeting this week.

South Korea's presidential office believes North Korea could test an intercontinental ballistic missile as soon as Monday, local media reported, citing an unnamed source.

Foreigners were net sellers of 639 billion won (S$705.9 million) worth of shares on the main board.

The won ended at 1,242.3 per dollar on the onshore settlement platform, 0.83 per cent lower than its previous close at 1,232.

In offshore trading, the won was quoted at 1,241.8 per dollar, down 0.4 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,242.2.

In money and debt markets, March futures on 3-year treasury bonds rose 0.01 point to 108.16.

The most liquid 3-year Korean treasury bond yield rose by 2.5 basis points to 2.282 per cent, while the benchmark 10-year yield rose by 3.9 basis points to 2.739 per cent. REUTERS