South Korean stocks dip ahead of Fed decision

SEOUL: Round-up of South Korean financial markets:

** South Korean shares fell on Wednesday as traders braced for a likely US Federal Reserve policy decision to taper its pandemic-era stimulus. The Korean won weakened, while the benchmark bond yield fell.

** The benchmark KOSPI fell 37.78 points, or 1.25%, to 2,975.71, as of 0630 GMT.

** Trading was thin as many were in a wait-and-see mode ahead of the Federal Open Market Committee decision, while the spread of COVID-19 in China also weakened sentiment, said Kim Seok-hwan, an analyst at Mirae Asset Securities.

** Among heavyweights, technology giant Samsung Electronics fell 1.54% and peer SK Hynix slipped 1.86%, while LG Chem dropped 5.66% and Naver declined 1.83%.

** Kakao Pay Corp saw its shares double in value from their IPO price on their trading debut, as the fintech's expected growth in transactions and other services whetted investor appetite.

** China stocks fell as risk appetite took a hit after Premier Li Keqiang warned of economic downward pressure while new locally transmitted COVID-19 cases spiked to a near three-month high, lifting the prospect of fresh curbs in Beijing.

** Foreigners were net sellers of 448.7 billion won worth of shares on the main board.

** The won was quoted at 1,181.6 per dollar on the onshore settlement platform, 0.61% lower than its previous close at 1,174.4.

** In offshore trading, the won was quoted at 1,181.5 per dollar, down 0.3% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,182.6.

** The won has lost 8.1% against the dollar so far this year.

** In money and debt markets, December futures on three-year treasury bonds fell 0.01 point to 108.17.

** The most liquid 3-year Korean treasury bond yield fell by 0.4 basis point to 2.036%, while the benchmark 10-year yield fell by 1.1 basis points to 2.469%.