South Korean shares track China market slump; won weakens

SEOUL:: Round-up of South Korean financial markets:

South Korean shares closed lower on Monday, as investors tracked lacklustre sentiment in China’s blue-chip stocks amid uncertainties over market regulation in Beijing. The won weakened, while the benchmark bond yield fell.

The benchmark KOSPI closed down 10.26 points, or 0.40%, at 2,567.82.

China’s blue-chip index fell to its lowest level in nearly five years on Monday, while Hong Kong stocks shed roughly 2%, amid rising geopolitical tensions and weak confidence in Beijing’s economy.

China’s securities regulator is allowing mutual fund managers to sell more shares than they buy each day, three sources said, removing a ban introduced late last year aimed at propping up a flagging stock market.

South Korea’s finance minister said on Monday the government will expand the size of a market stabilizing fund from the current 85 trillion won ($64.74 billion), if needed, as risks related to builder Taeyoung Engineering & Construction can increase.

South Korean shares fall over 2% amid lower bets of early US rate cuts

Among index heavyweights, chipmaker Samsung Electronics fell 0.13% and peer SK Hynix lost 1.09%, while battery maker LG Energy Solution slid 0.24%.

Hyundai Motor shed 0.85% and sister automaker Kia Corp lost 2.95%, while search engine Naver and instant messenger Kakao were up 2.72% and 2.51%, respectively.

Of the total 939 traded issues, 361 shares advanced, while 501 declined.

Foreigners were net buyers of shares worth 173.3 billion won on the main board on Monday.

The won ended onshore trade at 1,316.0 per dollar, 0.05% lower than its previous close at 1,315.4.

In offshore trading, the won was quoted at 1,315.8 per dollar, down 0.1% on the day, while in non-deliverable forward trading its one-month contract was quoted at 1,313.3.

In money and debt markets, March futures on three-year treasury bonds fell 0.03 point to 104.82.