South Korean shares close down on US inflation worries

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell on Monday after a key U.S. survey showed a jump in consumers’ inflation expectations, adding to worries that interest rate cuts in the world’s largest economy may be delayed. The won weakened, while the benchmark bond yield rose.

The benchmark KOSPI closed down 0.42 points, or 0.02%, at 2,727.21.

The debate over whether U.S. interest rates are high enough has deepened among Federal Reserve officials, and may be stoked further after a key survey showed a jump in consumers’ inflation expectations.

U.S. President Joe Biden is set to announce new China tariffs as soon as this week targeting strategic sectors, including a major hike in levies on electric vehicles (EVs), according to three people familiar with the matter.

South Korean shares post biggest daily gain in a month on chip, battery rally

Among index heavyweights, chipmaker Samsung Electronics fell 1.01% and peer SK Hynix gained 2.17%, while battery maker LG Energy Solution slid 0.52%.

Hyundai Motor added 1.45% and sister automaker Kia Corp gained 0.18%, while search engine Naver and instant messenger Kakao were down 2.28% and 1.67%, respectively.

Of the total 933 traded issues, 381 shares advanced, while 485 declined.

Foreigners were net buyers of shares worth 11.3 billion won ($8.26 million) on the main board on Monday.

The won ended onshore trade at 1,368.2 per dollar, 0.01% lower than its previous close at 1,368.1.

In offshore trading, the won was quoted at 1,368.4 per dollar, up 0.1% on the day, while in non-deliverable forward trading its one-month contract was quoted at 1,365.6.

The KOSPI has risen 2.71% so far this year, but lost 1% in the previous 30 trading sessions.

The won has lost 5.9% against the dollar so far this year.

In money and debt markets, June futures on three-year treasury bonds fell 0.05 point to 104.31.

The most liquid three-year Korean treasury bond yield rose by 1.4 basis points to 3.456%, while the benchmark 10-year yield rose by 1.6 basis points to 3.554%.