Seoul: Stocks fall over 1% as US yields rise

[SEOUL] South Korean shares fell more than 1 per cent on Thursday, after Wall Street retreated overnight on tech sell-off and weak jobs data, and as worries about rising US bond yields hit global equities. The won weakened, while the benchmark bond yield rose.

Investors are now awaiting US Federal Reserve chairman Jerome Powell's speech at a Wall Street Journal conference, where he may address concerns about the risk of a rapid rise in long-term borrowing costs.

The Kospi closed down 37.68 points or 1.22 per cent at 3,045.31, after declining nearly 2 per cent in early trade.

Chip giants Samsung Electronics and SK Hynix fell 1.9 per cent and 3.4 per cent respectively, leading declines in the benchmark index, while internet giant Naver and battery maker LG Chem slipped 2 per cent and 0.6 per cent, respectively.

Foreigners were net sellers of 927.8 billion won (S$1.1 billion) worth of shares on the main board.

US shares had fallen overnight as investors sold off high-flying technology shares, while US private payrolls increased less than expected in February, suggesting the labour market was struggling to regain speed.

Back home, consumer inflation accelerated to a 13-month high in February, data showed, driven by improving domestic demand and rising global oil prices.

Meanwhile, the economy expanded by a seasonally adjusted 1.2 per cent in the final quarter of 2020, revised central bank data showed.

The won ended at 1,125.1 per dollar on the onshore settlement platform, 0.43 per cent lower than its previous close at 1,120.3.

In offshore trading, the won was quoted at 1,124.8, while in non-deliverable forward trading its one-month contract was quoted at 1,124.6.

The most liquid three-year Korean treasury bond yield rose by 1 basis point to 1.028 per cent, while the benchmark 10-year yield rose by 1.8 basis points to 1.970 per cent.

REUTERS