South Korean shares fall after US and Iran fail to reach deal

SEOUL: Round-up of South Korean financial markets:  

South Korean shares fell on Monday, after the US and Iran failed to reach a deal to end the war over the weekend.

The won weakened, while the benchmark bond yield rose.

The benchmark KOSPI was down 62.26 points, or 1.06%, at 5,796.61 as of 0245 GMT, after falling more than 2% earlier in the session.

The US military said it will begin a blockade of all maritime traffic entering and exiting Iranian ports and coastal areas on Monday after weekend talks failed to reach a deal to end the war with Iran, jeopardizing a fragile two-week ceasefire.

“The blockade of the Strait of Hormuz by the US raises the possibility of increased market volatility and global supply chain disruptions,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Among index heavyweights, chipmaker Samsung Electronics fell 2.18%, while peer SK Hynix gained 0.19%. Battery maker LG Energy Solution slid 2.06%.

Hyundai Motor and sister automaker Kia Corp were down 2.25% and 1.48%, respectively.

teelmaker POSCO Holdings shed 2.71%, while drugmaker Samsung BioLogics fell 1.27%. Of the total 908 traded issues, 332 shares advanced, while 538 declined.

Foreigners were net sellers of shares worth 630.8 billion won ($423.41 million).

The won was quoted at 1,489.8 per dollar on the onshore settlement platform, 0.42% lower than its previous close at 1,483.5. In money and debt markets, June futures on three-year treasury bonds lost 0.14 point to 104.15.

The most liquid three-year Korean treasury bond yield rose by 5.2 basis points to 3.408%, while the benchmark 10-year yield rose by 5.4 basis points to 3.741%.‑Reuters