Seoul: Stocks post fourth weekly drop in 5 on rate hike bets, Ukraine worries

[SEOUL] South Korean shares ended lower on Friday (Mar 11), posting their fourth weekly loss in 5, as red-hot US inflation data raised bets for more aggressive rate hikes, while little progress in Russia-Ukraine talks also weighed on sentiment.

The Korean won weakened, while the benchmark bond yield fell.

The benchmark Kospi closed down 19.04 points, or 0.71 per cent, at 2,661.28. For the week, the index declined 1.92 per cent, reversing a 1.37 per cent gain in the previous week.

Leading the declines, chip giants Samsung Electronics and SK Hynix fell 1.69 per cent and 2.5 per cent, respectively, while battery maker LG Energy Solution dropped 6.35 per cent.

US consumer inflation shot up 7.9 per cent year on year in February, marking the largest annual increase in 40 years.

The data comes a week ahead of the Federal Open Market Committee's March meeting, where the central bank is expected to raise the rates by at least 25 basis points.

Talks between Ukraine and Russia on Thursday failed to bring any respite in the conflict.

At home, South Korea posted a US$1.39 billion trade deficit for the first 10 days of March, data showed, with soaring commodities prices heightening pressure on the trade-reliant economy.

Foreigners were net sellers of 679.3 billion won (S$748.3 million) worth of shares on the main board.

The won ended at 1,232 per dollar on the onshore settlement platform, 0.3 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,232.1 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,232.4.

In money and debt markets, March futures on 3-year treasury bonds rose 0.09 point to 108.12.

The benchmark 10-year yield fell by 1.9 basis points to 2.707 per cent. REUTERS