Seoul: Stocks fall 1% on Wall Street tech selloff

[SEOUL] South Korean shares slumped over 1 per cent on Wednesday, tracking a tech-led plunge on Wall Street overnight, as volatility increased ahead of the expiry of Kospi futures and options contracts. The won and the benchmark bond yield also fell.

The benchmark Kospi closed down 26.10 points or 1.09 per cent at 2,375.81, snapping a two-day winning streak spurred by a Samsung-led tech rally.

Wall Street's tech-and-stimulus-led rally was halted last week with the Nasdaq falling as much as 9.9 per cent from its record closing high as investors booked profits after a run that boosted the index about 70 per cent from its pandemic-lows.

South Korea reported 156 new coronavirus cases as of Tuesday midnight, much slower than the peak last month, as the government's unprecedented social distancing rules took effect.

Investors shrugged off data showing the country's unemployment rate dropped last month by the sharpest monthly decline since 1999.

Local media reported Samsung Electronics' display unit and LG Display are expected to stop supplying panels for premium smartphones to Huawei Technologies due to US restrictions. Samsung Electronics slid 0.5 per cent, while LG Display was flat.

Foreigners were net sellers of 116.7 billion won (S$134.3 million) worth of shares on the main board.

The won ended trading at 1,189.1 per US dollar on the onshore settlement platform, 0.23 per cent lower than its previous close at 1,186.4.

In offshore trading, the won was quoted at 1,189.3 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,188.8.

The most liquid three-year Korean treasury bond yield fell by 3.3 basis points to 0.917 per cent, while the benchmark 10-year yield fell by 3.9 basis points to 1.517 per cent.

REUTERS