South Korean shares fall for third day as chipmakers extend losses

SEOUL: Round-up of South Korean financial markets:

Chipmakers drag South Korean shares lower; Samsung at more than 2-year low

• South Korean shares fell on Tuesday for a third straight session, as chipmakers extended losses on fears of an escalation in Sino-US trade tensions. The won was steady, while the benchmark bond yield fell.

• The benchmark KOSPI was down 18.29 points, or 0.72%, at 2,513.37, as of 0111 GMT. It hit its lowest level in two months.

• Chipmaker Samsung Electronics fell 1.64% to its lowest in more than two years, while peer SK Hynix lost 2.70%.

• South Korea’s ruling party proposed a special chips act on Monday to give chipmakers subsidies and an exemption from a national cap on working hours, to tackle potential risks from measures threatened by incoming US President Donald Trump.

• China’s semiconductor index leapt close to a three-year high on Monday on bets a US order halting Taiwan Semiconductor Manufacturing Co’s shipments of advanced chips to Chinese customers could accelerate Beijing’s self-reliance efforts.

• On Wall Street, the Philadelphia Semiconductor Index dropped 2.5% on Monday, while US electric-vehicle maker Tesla rose 9%.

• Battery maker LG Energy Solution climbed 3.25% and e-commerce firms gained, while biopharmaceutical manufacturers fell, among major heavyweights.

• Of the total 936 traded issues, 151 shares advanced, while 753 declined.

• Foreigners were net sellers of shares worth 55.4 billion won ($39.55 million).

• The won was quoted at 1,401.1 per dollar on the onshore settlement platform, 0.01% lower than its previous close at 1,401.0.

• In money and debt markets, December futures on three-year treasury bonds rose 0.06 point to 106.00.

• The most liquid three-year Korean treasury bond yield fell by 1.9 basis points to 2.881%, while the benchmark 10-year yield fell by 3.6 basis points to 3.009%.