Seoul: Stocks mark worst day in a week as Ukraine crisis deepens

[SEOUL] South Korean shares marked their worst session in a week on Tuesday (Feb 22), as investors rushed to safe-haven assets after tensions between Russia and Ukraine deepened. The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi closed down 37.01 points, or 1.35 per cent, at 2,706.79, after falling as much as 1.96 per cent earlier in the day. It has lost 9.1 per cent so far this year.

Leading the decline, chip giants Samsung Electronics and SK Hynix fell 1.08 per cent and 1.15 per cent, respectively, while battery maker LG Energy Solution slid 2.87 per cent.

Russian President Vladimir Putin on Monday recognised 2 breakaway regions in eastern Ukraine as independent and ordered the Russian army to launch what Moscow called a peacekeeping operation into the area, accelerating a crisis the West fears could unleash a major war.

South Korea continued to report nearly a 100,000 new daily Covid-19 infections, but authorities have pushed ahead with slightly easing social distancing rules ahead of a presidential election next month.

Meanwhile, the Bank of Korea is expected to stand pat at its rate decision meeting on Thursday, following back-to-back hikes at the previous 2 meetings, a Reuters poll showed.

Foreigners were net sellers of 326.1 billion won (S$368.2 million) worth of shares on the main board.

The won ended at 1,192.7 per dollar on the onshore settlement platform, 0.05 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,192.8, while in non-deliverable forward trading, its 1-month contract was quoted at 1,193.3.

In money and debt markets, March futures on 3-year treasury bonds rose 0.12 point to 107.72.

The benchmark 10-year yield fell by 5.5 basis points to 2.719 per cent. REUTERS