South Korean shares end lower as battery makers drag

SEOUL: Round-up of South Korean financial markets:

South Korean shares erased early gains to end lower on Tuesday, as battery makers dropped, while broader market focus was on earnings releases of major companies later in the week.

The benchmark KOSPI closed down 6.42 points, or 0.24%, at 2,623.02.

Battery maker LG Energy Solution slid 2.25%, tracking U.S. electric-vehicle giant Tesla’s drop of 3.4% overnight. Peers Samsung SDI and SK Innovation fell 3.44% and 1.99%, respectively.

Among other index heavyweights, chipmakers and e-commerce firms fell, but automakers rose.

“The market was in a wait-and-see mood ahead of earnings of U.S. big tech companies this week and U.S. inflation data on Friday,” said Park Kwang-nam, an analyst at Mirae Asset Securities.

South Korea’s major chip and auto companies will also report their first-quarter results later this week.

South Korean shares gain more than 1% in ‘value-up’ rally

The country’s finance minister said authorities would closely monitor financial markets and the adverse economic impact from geopolitical tensions in the Middle East.

The South Korean economy likely grew 0.6% last quarter, maintaining the same pace of expansion as in the previous three months, as improving exports offset weakening household consumption, according to a Reuters poll.

Of the total 931 traded issues, 472 shares advanced, while 406 declined.

Krafton dropped 8.11% as SK Square sold its shares worth $191.5 million in the video game developer in a block sale.

Foreigners were net sellers of shares worth 288.7 billion won ($209.55 million) on the main board.

The won ended onshore trade at 1,378.3 per dollar, 0.07% higher than its previous close at 1,379.2.

The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 3.491%, while the benchmark 10-year yield fell by 2.8 basis points to 3.621%.