Seoul: Stocks fall on Evergrande woes, Fed's tapering hint

[SEOUL] South Korean shares fell on Thursday as fears lingered over property developer China Evergrande's debt burden, while investors weathered the prospect of a reduction in stimulus by the US Federal Reserve. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi fell 12.93 points or 0.41 per cent to 3,127.58.

Among the heavyweights, technology giant Samsung Electronics rose 0.26 per cent and peer SK Hynix fell 1.40 per cent, while LG Chem rose 8.42 per cent and Naver fell 0.74 per cent.

South Korea's markets resumed trading on Thursday after being closed from Monday through Wednesday for a public holiday.

China's embattled property developer Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds, in a crucial moment for global investors worried that its malaise could spread beyond the country's property sector.

The Federal Reserve said on Wednesday it would likely begin reducing its monthly bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected.

Foreigners were net buyers of 553.1 billion won (S$635.6 million) worth of shares on the main board.

The won was quoted at 1,175.5 per dollar on the onshore settlement platform, 0.04 per cent lower than its previous close at 1,175.0.

In offshore trading, the won was quoted at 1,175.6 per dollar, up 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,175.9.

The won has lost 7.6 per cent against the dollar so far this year.

In money and debt markets, December futures on three-year treasury bonds fell 0.09 point to 109.58.

The most liquid three-year Korean treasury bond yield rose by 1.9 basis points to 1.556 per cent, while the benchmark 10-year yield rose by 3.4 basis points to 2.100 per cent.

REUTERS