South Korea: Stocks end at over four-month low on taper, virus fears

[SEOUL] South Korean shares closed nearly 2 per cent lower on Thursday, its lowest in more than four months, as worries about the Delta coronavirus variant and the US Federal Reserve's tapering dented risk appetite. The won and the benchmark bond yield fell.

The Kospi ended down 61.10 points, or 1.93 per cent, at 3,097.83, marking the lowest close since April 1. It also posted the sharpest daily fall since Feb 26.

The benchmark tracked Wall Street's losses overnight after the minutes from the Fed showed officials expected they could ease stimulus this year if the economy continues to improve.

Meanwhile, South Korea reported more than 2,000 new coronavirus cases for the second time on Thursday as it struggles to subdue a wave of outbreaks during the summer holidays.

Technology giants led the declines, with Samsung Electronics and SK Hynix tumbling 1.08 per cent and 1.44 per cent, respectively. Naver and Samsung Biologics also dropped 1.05 per cent and 1.81 per cent.

"Uncertainties about Fed's tapering is affecting South Korea equities and its peers across the region," said Kiwoom Securities' analyst Han Ji-young.

Foreigners were net sellers of 323.2 billion won ($374.6 million) worth of shares on the main board.

Of the total traded issues of 920, the number of advancing shares was only 58.

The won ended at 1,176.2 per US dollar on the onshore settlement platform, down 0.70 per cent.

In offshore trading, the won was quoted at 1,176.0 per US dollar, down 0.5 per cent, while in non-deliverable forward trading its one-month contract was quoted at 1,176.2.

In money and debt markets, September futures on three-year treasury bonds rose 0.11 point to 110.56.

The most liquid three-year Korean treasury bond yield fell by 2.8 basis points to 1.360 per cent.

REUTERS