South Korean stocks end near one-week low on hawkish Fed, BOK rate hike

SEOUL: Round-up of South Korean financial markets:

** South Korean shares ended at a near one-week low on Thursday, as minutes of the US Federal Reserve's last meeting revealed a hawkish tilt on the board, while the Bank of Korea's rate hike and upgrade in 2022 inflation forecast bolstered bets for further tightening.

** The Korean won ended down and the benchmark bond yield also fell.

** The benchmark KOSPI closed 14.02 points, or 0.47%, lower at 2,980.27, extending the declines to a third straight session.

** Chip giants Samsung Electronics and SK Hynix fell 1.47% and 1.67%, respectively, leading declines, while battery maker LG Chem also slid 1.07%.

** The country's central bank raised interest rates and sharply revised up its inflation outlook for next year to 2.0% on Thursday, as concerns about rising household debt and consumer prices grew.

** That comes after a rate hike in New Zealand, the second time in two months, and various Fed policymakers saying they would be open to speeding up the taper of their bond-buying programme and increasing rates if inflation woes lingered.

** "Hawkish tone in Fed minutes and the renomination of Fed Chair Jerome Powell that strengthened dollar are having unfavourable impacts on emerging markets," said Bookook Securities' analyst Lee Won.

** Foreigners were net sellers of 94.4 billion won ($79.34 million) worth of shares on the main board.

** The won ended at 1,190.2 per dollar on the onshore settlement platform, 0.31% lower than its previous close.

** In offshore trading, the won was quoted at 1,189.9, down 0.1% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,190.6.

** In money and debt markets, December futures on three-year treasury bonds rose 0.24 points to 108.64.

** The benchmark 10-year yield fell by 3.2 basis points to 2.362%.