Seoul: Stocks retreat from record close on tech rout, US inflation worries

[SEOUL] South Korean shares slipped from a record closing high on Tuesday, as chip heavyweights tracked an overnight tech sell-off on Wall Street, while investors awaited US inflation data due later this week.

Both the won and the benchmark bond yield fell.

The benchmark Kospi closed 39.87 points lower or 1.23 per cent at 3,209.43, ending a four-day winning streak. It jumped 1.63 per cent to close at a record high on Monday.

Chip giants Samsung Electronics and SK Hynix fell 2.28 per cent and 5 per cent, while internet giant Naver dropped 3.59 per cent.

Battery material maker SK IE Technology (SKIET) saw its stock plunge near 30 per cent, after debuting at double the price set during an initial public offering.

Foreigners were net sellers of 2.20 trillion won (S$2.61 billion) worth of shares on the main board, Refinitiv data showed, the third-biggest on record.

Investors now await US consumer price data due on Wednesday.

Meanwhile, data on Tuesday showed South Korea's exports for the first 10 days of May surged 81.2 per cent year-on-year, adding to the growing signs of a trade-led recovery.

"Chip shares led losses (in Kospi) following a tech rout in the United States on worries about inflation," said Bookook Securities' analyst Lee Won.

The won was quoted at 1,119.6 per dollar on the onshore settlement platform, 0.52 per cent lower than its previous close at 1,113.8.

In offshore trading, the won was quoted at 1,118.8 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,118.6.

In money and debt markets, June futures on three-year treasury bonds rose 0.02 point to 110.93.

The most liquid three-year Korean treasury bond yield fell 0.9 basis point to 1.128 per cent.

REUTERS