Seoul: Stocks slide for third day on concerns over crypto, US inflation

[SEOUL] South Korean shares ended lower on Monday as investors weighed a plunge in cryptocurrencies and awaited key US inflation readings this week for guidance on monetary policy.

The won ended flat, while the benchmark bond yield fell.

The benchmark Kospi closed down 12.12 points or 0.38 per cent at 3,144.30, extending its losing streak to a third straight session.

Bitcoin fell 13 per cent on Sunday after suffering another sell-off that left it nearly 50 per cent lower than the year's high.

Investors also awaited US personal consumption and inflation figures due later this week, with a high reading for the core inflation figures likely to ring alarms and revive talk of an early tapering by the US Federal Reserve.

Chip giants Samsung Electronics and SK Hynix fell 0.50 per cent and 2.45 per cent, respectively, while battery maker LG Chem inched down 0.22 per cent and internet company Naver dropped 1.25 per cent.

Foreigners were net sellers of 237.6 billion won (S$280.5 million) worth of shares on the main board.

Meanwhile, South Korea's central bank on Monday said it will choose a technology supplier to build a pilot platform for a digital currency.

The won ended at 1,127.1 per dollar on the onshore settlement platform, nearly unchanged from its previous close of 1,127.0.

In offshore trading, the won was quoted at 1,126.8 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading, its one-month contract was quoted at 1,126.2.

In money and debt markets, June futures on three-year treasury bonds fell 0.05 point to 111.03.

The most liquid three-year Korean treasury bond yield rose by 1.9 basis points to 1.114 per cent, while the benchmark 10-year yield fell by 0.3 basis point to 2.121 per cent.

REUTERS