Seoul: Stocks end nearly 1% lower on tech slump; US inflation eyed

[SEOUL] South Korean shares closed lower on Wednesday, dragged by tech heavyweights and a sell-off by foreigners, with sentiment dented by investors avoiding big bets ahead of US inflation data and European Central Bank policy meeting this week.

The won weakened and the benchmark bond yield fell.

The benchmark Kospi ended 31.65 points or 0.97 per cent lower at 3,216.18, marking the third decline in five sessions.

Among heavyweights, technology giant Samsung Electronics fell 0.98 per cent and peer SK Hynix dropped 3.92 per cent. Battery maker LG Chem and internet giant Naver also slid 0.74 per cent and 1.10 per cent, respectively.

Foreigners were net sellers of 329.5 billion won (S$391.4 million) worth of shares on the main board.

"Investors are seen taking a wait-and-see stance ahead of the US inflation data release ... Outflow of foreign investors widened in afternoon trade, pulling Kospi further down," said Lee Kyoung-min, analyst at Daishin Securities.

The won ended at 1,115.4 per dollar on the onshore settlement platform, down 0.11 per cent.

In offshore trading, the won was quoted at 1,115.1 per dollar, up 0.2 per cent, while in non-deliverable forward trading, its one-month contract was quoted at 1,114.8.

In money and debt markets, June futures on three-year treasury bonds rose 0.09 point to 110.99, while the three-month Certificate of Deposit rate was quoted at 0.66 per cent in late-afternoon trade.

The most-liquid three-year Korean treasury bond yield fell by 3.1 basis points to 1.143 per cent, while the benchmark 10-year yield fell by 1.4 basis points to 2.102 per cent.

REUTERS