Seoul: Stocks fall for sixth day on global economic slowdown concerns

SOUTH Korean shares fell for a sixth straight session on Tuesday (May 10), hitting their lowest in nearly 1 1/2 years on worries of global economic slowdown due to monetary tightening in the US and prolonged lockdown measures in China. The Korean won hit a fresh 26-month low, while the benchmark bond yield fell.

The benchmark Kospi closed down 14.25 points, or 0.55 per cent, at 2,596.56, after dropping as much as 2.21 per cent. It marked the longest losing streak since late November 2021, and the lowest close since Nov 30, 2020.

The market cut early sharp losses on the perception that stocks were over-sold with no new downside factors, as well as a rebound in US stock index futures and Chinese stocks, said Lee Kyoung-min, an analyst at Daishin Securities.

Among heavyweights, technology giant Samsung Electronics fell 0.61 per cent but peer SK Hynix jumped 2.33 per cent, while battery maker LG Energy Solution lost 0.13 per cent.

Foreigners were net sellers of 319.5 billion won (S$347.8 million) worth of shares on the main board.

South Korea’s new president Yoon Suk-yeol started his 5-year term on Tuesday, while his inauguration speech had little impact on markets.

The won was last quoted at 1,276.4 per dollar on the onshore settlement platform, 0.19 per cent lower than its previous close at 1,274, after hitting a fresh 26-month low of 1,278.9.

In offshore trading, the won was quoted at 1,276 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,276.

In money and debt markets, June futures on 3-year treasury bonds rose 0.07 point to 105.14 in late afternoon trade.

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Seoul: Stocks hit near 1 1/2-year low on rising US yields, China lockdowns

The most liquid 3-year Korean treasury bond yield fell by 0.8 basis point to 3.052 per cent, while the benchmark 10-year yield fell by 0.1 basis point to 3.412 per cent. REUTERS