Seoul: Shares drop on liquidity fears in China, US stimulus worries
[SEOUL] South Korean stocks fell on Tuesday as foreign investors turned net sellers due to liquidity fears after China's central bank withdrew cash from its banking system and as uncertainty over a US stimulus package lingered.
By 0630 GMT, the benchmark Kospi fell 68.68 points, or 2.14 per cent, to 3,140.31.
Short-term borrowing costs in China jumped to their pre-Covid-19 levels on Tuesday, pressured by the combination of the central bank's extended net drain of cash from the financial system and higher holiday demand.
Worries over the US$1.9 trillion US stimulus plan rose after it faced opposition from Republicans in Congress.
That overshadowed data showing South Korea grew at a faster-than-expected pace in the fourth quarter.
Foreigners were net sellers of 1,976.0 billion won (S$2.3 billion) worth of shares on the main board. Retail investors net purchased more than 4 trillion worth of shares.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Heavyweight chip giants Samsung Electronics and SK Hynix dropped 3.02 per cent and 4.44 per cent, respectively.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results
Mixed trading in Asia as investors watch for further macro data; STI down 0.2%
Vietnam delays launch of new stock trading system
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data