Seoul: Stocks fall 1% ahead of US inflation data

[SEOUL] South Korean shares fell 1 per cent on Tuesday (Apr 12) to their lowest close in nearly a month amid cautious mood ahead of the US inflation data. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi ended down 26.34 points, or 0.98 per cent, to 2,666.76, marking the lowest close since Mar 16.

Among the heavyweights, technology giant Samsung Electronics fell 1.33 per cent and peer SK Hynix lost 0.45 per cent, while battery maker LG Energy Solution dropped 3.29 per cent.

Foreigners were net sellers of 465.1 billion won (S$515.4 million) worth of shares on the main board, extending sell-offs to a fifth straight session.

Stocks fell as worries of global economic slowdown and US inflation continued, said Mirae Asset Securities' analyst Kim Seok-hwan.

South Korea's finance minister said he will lobby for the country to be included in the Morgan Stanley Capital International (MSCI) developed market index when he meets the index provider next week.

He also made comments that the won is currently trading at one of the weakest levels he has ever seen and that the government is ready to deploy market stabilising measures if needed.

The won closed trading at 1,236.2 per dollar on the onshore settlement platform, 0.25 per cent lower than its previous close at 1,233.1.

In offshore trading, the won was quoted at 1,233 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,232.9.

In money and debt markets, June futures on 3-year treasury bonds rose 0.27 point to 104.88.

The most liquid 3-year Korean treasury bond yield fell by 7.1 basis points to 3.106 per cent, while the benchmark 10-year yield rose by 1.6 basis points to 3.314 per cent. REUTERS