Seoul: Stocks fall as Omicron spreads, US inflation data in focus

[SEOUL] South Korean shares fell on Monday (Dec 6), as Asian markets weakened with the Omicron coronavirus variant spreading to more countries and driving up investor caution ahead of US inflation data. Both the won and the benchmark bond yield fell.

By 1.52 am GMT, the KOSPI slipped 3.58 points, or 0.1 per cent, to 2,964.75, set for the first decline in 4 sessions.

Among the heavyweights, technology giant Samsung Electronics rose 0.4 per cent, while peer SK Hynix fell 0.9 per cent. Battery maker LG Chem and platform company Naver also dropped 0.6 per cent and 2.5 per cent, respectively.

The Omicron variant emerged in more countries and has spread to about a third of US states. In South Korea, there have been 24 confirmed Omicron cases in total so far.

US jobs data suggested an earlier-than-expected tapering by the US Federal Reserve when they meet later this month, with the focus now shifting to the consumer price report due on Friday (Dec 10).

On the main board, foreigners were net sellers of 18.1 billion won (S$21 million) worth of shares.

The won was quoted at 1,184.4 per dollar on the onshore settlement platform , 0.4 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,183.5, while in non-deliverable forward trading, its one-month contract was quoted at 1,183.1.

In money and debt markets, December futures on 3-year treasury bonds rose 0.14 point to 109.00.

The most liquid 3-year Korean treasury bond yield fell by 4.1 basis points to 1.86 per cent, while the benchmark 10-year yield fell by 4.2 basis points to 2.191 per cent.

REUTERS