Seoul: Stocks end lower on Ukraine, recession fears

[SEOUL] South Korean shares ended lower on Friday (Apr 1) as the Ukraine crisis and weak data out of Asia sparked worries of a recession, although stocks still posted a third straight weekly gain.

The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed down 17.80 points, or 0.65 per cent, at 2,739.85. For the week, it rose 0.36 per cent largely on hopes of progress in peace talks between Russia and Ukraine.

Leading Friday's decline, chip heavyweights Samsung Electronics and SK Hynix fell 0.72 per cent and 1.69 per cent, respectively.

The Ukraine crisis deepened, with Russia threatening to halt supplies to Europe unless they are paid in roubles.

Meanwhile, most Asian factories saw activity slowing in March, fanning fears of recession.

South Korea's exports grew at a faster pace than expected, but the trade balance swung to a deficit in March as a sharp rise in prices of energy and raw material imports caused by supply snags and the Ukraine war offset bumper gains in exports.

Meanwhile, the nominee to head the country's central bank said earlier in the day that South Korea's soaring household debt needs to be curbed, pushing the most-liquid 3-year treasury yield to as high as 2.785 per cent, just notches below a near 8-year high reached on Monday.

Foreigners were net sellers of 67.2 billion won (S$74.9 million) worth of shares on the main board.

The won was quoted at 1,215.5 per dollar on the onshore settlement platform, 0.28 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,215.6 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,216.2.

In money and debt markets, June futures on 3-year treasury bonds fell 0.37 point to 105.86.

The benchmark 10-year yield rose by 3.6 basis points to 3.005 per cent. REUTERS