Seoul: Stocks fall most in three weeks on vaccine, US stimulus uncertainties

[SEOUL] South Korean shares fell the most in nearly three weeks on Wednesday as halted Covid-19 vaccine trials and fading hopes for another US pandemic relief package soured sentiment, pulling global equities lower. The won was nearly unchanged, while the benchmark bond yield fell.

The Kospi closed down 22.67 points or 0.94 per cent at 2,380.48, marking its biggest fall since Sept 24.

"Reports of the halt of vaccine trials, the key to economic recovery, was the biggest drag to the stock market. The slower the vaccine development, the greater the uncertainties," Shinhan Investment analyst Choi Yoo-june said.

Hyundai Motor's shares closed down 0.6 per cent after rising as much as 2.5 per cent, as the group appointed Euisun Chung as group chairman, formally cementing his succession to the leadership of the world's fifth-largest automaker conglomerate from his octogenarian father.

Shares of LG Chem, which supplies batteries to General Motor (GM), fell 2.5 per cent, after US auto safety regulators said on Tuesday they are investigating reports of fires in three GM's electric Chevrolet Bolt cars.

Meanwhile, the central bank kept its policy rate steady on Wednesday, noting housing prices continued to rise, but reiterated an accommodative monetary stance as it kept a downbeat outlook for the coronavirus-hit economy.

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Foreigners were net sellers of 37.4 billion won (S$44.3 million) worth of shares on the main board.

The won ended trading at 1,146.9 per US dollar on the onshore settlement platform, 0.02 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,146.4 per dollar, up 0.2 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,146.1.

In money and debt markets, December futures on three-year treasury bonds rose 0.07 point to 111.88.

The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 0.903 per cent.

REUTERS