South Korean shares track regional losses after Warsh's hawkish remarks

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell on Monday in line with regional markets after US Federal Reserve Chair Kevin Warsh made hawkish comments that reinforced expectations the central bank could hike interest rates next month.

The won strengthened, while the benchmark bond yield rose.

The benchmark KOSPI was down 167.29 points, or 2.46%, at 6,621.59 as of 0104 GMT.

Among index heavyweights, shares of chipmaker Samsung Electronics fell 2.72%, while peer SK Hynix lost 3.27%. Battery maker LG Energy Solution slid 0.54%.

Hyundai Motor and sister automaker Kia Corp were down 0.50% and up 0.31%, respectively.

Steelmaker POSCO Holdings shed 0.74%, while drugmaker Samsung BioLogics fell 0.81%.

The US central bank will “have work to do” if policymakers don’t get the confidence they need that inflation is heading down to 2%, Warsh said on Friday, coming closer than he has to acknowledging interest rate hikes may be needed to ease price pressures.

Of the total 908 traded issues, 133 shares advanced, while 746 declined. Foreigners were net sellers of shares worth 347.2 billion won.

The won was quoted at 1,377.3 per dollar on the onshore settlement platform, 0.16% higher than its previous close at 1,379.5.

In offshore trading, the won was quoted at 1,376.6 per dollar, down 0.0% on the day, while in non-deliverable forward trading its one-month contract was quoted at 1,376.1.

The KOSPI has risen 57.13% so far this year.

The won has strengthened 4.5% against the dollar so far this year.

In money and debt markets, September futures on three-year treasury bonds lost 0.09 point to 103.25.

The most liquid three-year Korean treasury bond yield rose 3.7 basis points to 3.835%, while the benchmark 10-year yield rose 2.0 basis points to 4.294%.