Seoul: Stocks fall after Fed chair's views; won hits 2-year low
SOUTH Korean shares closed lower on Friday (Apr 22), weighed by fears of aggressive US monetary tightening. The won hit a 2-year low, while the benchmark bond yield rose.
The benchmark Kospi closed down 23.5 points, or 0.86 per cent, to 2,704.71.
But the index rose 0.32 per cent for the week, after 2 straight weekly losses.
Federal Reserve Chair Jerome Powell said a half-point interest rate increase “will be on the table” when the central bank meets on May 3 to 4.
Worries deepened over the US monetary tightening and hopes of inflation peaking out faded, while losses were also capped by Chinese stocks’ rebound, said Daishin Securities’ analyst Lee Kyoung-min.
South Korea’s economic growth likely slowed significantly in the first quarter as restrictions imposed to prevent the spread of Covid-19 slammed the brakes on consumer spending, a Reuters poll found.
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Among the heavyweights, technology giant Samsung Electronics fell 1.03 per cent and peer SK Hynix dropped 2.21 per cent, while battery maker LG Energy Solution lost 0.11 per cent.
Foreigners were net sellers of 155.5 billion won (S$171.1 million) worth of shares on the main board.
The won closed trading at 1,239.1 per dollar on the onshore settlement platform, 0.01 per cent lower than its previous close, after hitting the lowest level since Mar 24, 2020 at 1245.4.
In offshore trading, the won was quoted at 1,239.4 per dollar, up 0.3 per cent, while in non-deliverable forward trading its 1-month contract was quoted at 1,239.0.
In money and debt markets, June futures on 3-year treasury bonds fell 0.13 point to 105.21 in late afternoon trade.
The most liquid 3-year Korean treasury bond yield rose by 6.2 basis points to 2.982 per cent, while the benchmark 10-year yield rose by 5.1 basis points to 3.341 per cent. REUTERS
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