South Korean shares fall over 2% amid lower bets of early US rate cuts
- KOSPI closed down 62.50 points, or 2.34%, at 2,607.31
SEOUL: Round-up of South Korean financial markets:
South Korean shares dropped on Wednesday and posted their worst day in more than two months as investors booked profits amid fading market optimism of early U.S. rate cuts.
The won weakened, while the benchmark bond yield rose.
The benchmark KOSPI closed down 62.50 points, or 2.34%, at 2,607.31.
The fall was the biggest since Oct. 26 and ended a four-day rally.
“Profit-taking sentiment intensified, especially towards technology stocks, as excessive hopes for rate cuts in the United States were cut back,” said Lee Kyoung-min, an analyst at Daishin Securities.
South Korea’s central bank governor said on Wednesday that the monetary board will adopt a mix of policies in finishing the “last mile” fight against inflation.
Most Asian currencies, stocks start 2024 on the back foot, key economic data in focus
Chipmaker Samsung Electronics fell 3.27%, peer SK Hynix lost 3.93% and battery maker LG Energy Solution slid 3.14%.
Among other index heavyweights, automakers fell more than 3%, while online platform companies declined over 2%.
LG Innotek, which supplies camera parts to Apple, fell 5.61%, after the smartphone maker fell due to a rating downgrade.
Taeyoung Engineering & Construction surged 23.85%. The troubled builder held a meeting on Wednesday with creditors for debt restructuring, according to local media.
Of the total 939 traded issues, 281 shares advanced, while 612 declined.
Foreigners were net sellers of shares worth 93.4 billion won ($71.55 million) on the main board.
The won ended onshore trade at 1,304.8 per dollar, 0.34% lower than its previous close at 1,300.4.
In money and debt markets, March futures on three-year treasury bonds fell 0.12 point to 104.91.
The most liquid three-year Korean treasury bond yield rose by 3.7 basis points to 3.275%, while the benchmark 10-year yield rose by 1.6 basis points to 3.323%.
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