Seoul: Stocks hit one-month low as Powell comments push yields higher

[SEOUL] South Korean shares hit a one-month low on Friday, as overnight slump in Wall Street and rising US Treasury yields continued to sap appetite for equities. The won weakened while the benchmark bond yield rose.

The Kospi was down 41.90 points or 1.4 per cent at 3,001.59, as of 0246 GMT, after declining as much as 2 per cent in early trade to its lowest intraday level since Feb 1. The index is poised for a weekly gain of 0.2 per cent.

US stocks dropped sharply overnight after Federal Reserve Chair Jerome Powell disappointed investors by not indicating that the Fed might step up purchases of long-term bonds to hold down longer-term interest rates, while the yield on 10-year Treasuries climbed above 1.5 per cent.

Heavyweights Samsung Electronics and SK Hynix dropped 0.9 per cent and 2.5 per cent, respectively, towing benchmark declines, while Internet giant Naver and battery maker Samsung SDI plunged 4.98 per cent and 2.95 per cent, respectively.

The trading volume during the session in the Kospi index was 670.76 million shares. Of the total traded issues of 910, the number of advancing shares was 160.

Foreigners were net sellers of 371.2 billion won (S440.3 million) worth of shares on the main board.

The won was quoted at 1,131.6 per US dollar on the onshore settlement platform, 0.6 per cent lower than its previous close at 1,125.1.

In offshore trading, the won was quoted at 1,129.4, while in non-deliverable forward trading its one-month contract was quoted at 1,129.2.

The most liquid three-year Korean treasury bond yield rose by two basis points to 1.05 per cent, while the benchmark 10-year yield rose by four basis points to 2.012 per cent.

REUTERS