Seoul: Stocks, won tumble ahead of US CPI data

SOUTH Korean shares tumbled on Friday (Jun 10) for a fourth session and posted their worst weekly performance in nearly 5 months on inflation concerns ahead of the key US data.

The Korean won also dropped and ended the week with the worst performance in 10 months, while the benchmark bond yield rose.

The benchmark Kospi ended down 29.57 points, or 1.13 per cent, at 2,595.87, falling for a fourth session in a row to the lowest close since May 19.

For the week, the index fell 2.8 per cent, the biggest weekly loss since late January.

Global monetary tightening worries increased after the European Central Bank’s policy meeting a day before, while caution ahead of US CPI data added pressure on the market, said Daishin Securities’ analyst Lee Kyoung-min.

Investors are eyeing clues of inflation peaking out from May inflation data from the US due later in the day.

Among heavyweights, technology giant Samsung Electronics dropped 2.15 per cent and peer SK Hynix fell 1.9 per cent, but battery maker LG Energy Solution rose 0.59 per cent.

Foreigners were net sellers of 845.2 billion won (S$918.8 million) worth of shares on the main board. For the week, foreigners net sold 2.1 trillion won, marking the biggest sell-off since mid-March.

The won was last quoted at 1,268.9 per dollar on the onshore settlement platform, 0.95 per cent lower than the previous session and its lowest close since May 19.

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The currency ended the week 2.07 per cent weaker against the dollar, logging the worst weekly performance since mid-August 2021.

In offshore trading, the won was quoted at 1,268.3 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,267.7.

In money and debt markets, June futures on 3-year treasury bonds fell 0.07 point to 104.97 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 2.8 basis points to 3.273 per cent, while the benchmark 10-year yield rose by 2.5 basis points to 3.49 per cent. REUTERS