South Korean shares set for biggest quarterly drop since early 2020
SEOUL: Round-up of South Korean financial markets: South Korean shares erased early gains to trade lower on Wednesday, weighed down by concerns over high bond yields, and were set for their biggest quarterly drop in 6-1/2 years. The benchmark KOSPI was down 3.01 points, or 0.04%, at 6,867.80, as of 0253 GMT, after rising as much as 1.4% earlier in the session. The KOSPI has fallen 19% so far this…
South Korean shares are set to experience their biggest quarterly decline in 6.5 years, according to market data. The benchmark KOSPI index fell by 0.04%, or 3.01 points, to 6,867.80 as of 0:25 GMT on Wednesday. This decline comes after the index had risen by 1.4% earlier in the session, marking a significant reversal. The KOSPI has lost 19% of its value this quarter, following six consecutive quarters of growth, and is now on track for its steepest quarterly drop since the first quarter of 2020.
The US stock market closed slightly lower on Tuesday, as government bond yields continued to rise ahead of inflation and labor market data releases. Meanwhile, investors reviewed comments from Federal Reserve officials regarding the direction of interest rates. South Korean Finance Minister stated that authorities are closely monitoring bond markets and will implement stabilizing measures if bond yields increase excessively.
The country's factory output unexpectedly declined in August, as reported by official data. Tech giant Samsung Electronics saw its shares drop by 1.01%, reversing early gains, whereas peer SK Hynix rose by 1.19% after surging over 3%. Other notable movements included LG Energy Solution, which increased by 0.99%, and Hyundai Motor and Kia Corp, both falling by 0.86% and 1.38%, respectively.
POSCO Holdings experienced a 0.33% increase, while Samsung BioLogics rose by 1.08%. Out of the 911 traded issues, 406 shares gained value, while 453 declined. Foreign investors were net sellers, with a total of 519.1 billion won ($382.99 million) worth of shares sold. Onshore settlement platform quoted the Korean won at 1,354.2 per dollar, a 0.01% decrease from the previous close of 1,354.0.
In money and debt markets, December futures for three-year treasury bonds rose by 0.16 point to 102.35. The most actively traded three-year Korean treasury bond yield fell by 5.1 basis points to 4.021%, while the benchmark 10-year yield decreased by 4.6 basis points to 4.424%.
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