Seoul: Stocks fall after Wall Street rout; won drops, yields jump

SOUTH Korean shares started the week lower on Monday (May 2) after Wall Street’s Friday rout and weaker-than-expected domestic exports data. The Korean won dropped, while the benchmark bond yield surged.

The benchmark Kospi fell 17.02 points, or 0.63 per cent, to 2,678.03 as of 0143 GMT, after losing as much as 1.01 per cent in early trade.

Among the heavyweights, technology giant Samsung Electronics fell 0.59 per cent, and peer SK Hynix lost 1.78 per cent, while battery maker LG Energy Solution dropped 2.16 per cent.

Wall Street marked its steepest daily losses since 2020 last Friday, while the Chinese stock market was closed on Monday.

South Korean stock market’s fall was comparatively milder than that of Wall Street, as US big tech companies’ earnings shock had a limited impact on local sentiment, said Kiwoom Securities’ analyst Kim Sae-hun.

South Korea’s exports grew at their slowest pace in 14 months in April, with its trade deficit widening as China-bound shipments shrank and rising energy and raw materials’ prices pushed up the country’s imports.

Foreigners were net sellers of 34 billion won (S$37.2 million) worth of shares on the main board.

The won was quoted at 1,264.5 per dollar on the onshore settlement platform, 0.68 per cent lower than its previous close at 1,255.9.

In offshore trading, the won was quoted at 1,265.9 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,265.0.

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In money and debt markets, June futures on three-year treasury bonds fell 0.29 points to 105.04.

The most liquid 3-year Korean treasury bond yield rose by 9.5 basis points to 3.053 per cent, while the benchmark 10-year yield rose by 12.3 basis points to 3.368 per cent. REUTERS