South Korean shares fall on market volatility sparked by US credit downgrade

SEOUL: Round-up of South Korean financial markets:

• South Korean shares fell 1% on Monday as a downgrade in US credit ratings weakened risk appetite.

• The benchmark KOSPI was down 26.91 points, or 1.02%, to 2,599.96 as of 0120 GMT.

• Moody’s downgraded the US sovereign credit rating on Friday due to concerns about the nation’s $36 trillion debt pile, in a move that could complicate President Donald Trump’s efforts to cut taxes and send ripples through global markets.

• South Korea’s finance ministry said it would closely monitor domestic and global financial and foreign exchange markets as the Moody’s downgrade could add to market volatility.

• Among index heavyweights, chipmaker Samsung Electronics fell 1.76%, while peer SK Hynix lost 3.13%. Battery maker LG Energy Solution climbed 1.55%.

• Hyundai Motor and sister automaker Kia lost 1.81% and 1.20%, respectively. Steelmaker POSCO Holdings shed 1.41%. Drugmaker Samsung Biologics rose 1.8%.

• Of the total 934 traded issues, 251 advanced and 639 declined.

• Foreigners were net sellers of shares worth 52.5 billion won ($37.6 million).

• The won was quoted at 1,395.2 per dollar on the onshore settlement platform, 0.34% higher than Friday’s close at 1,400.0.

• In the money and debt markets, June futures on three-year treasury bonds lost 0.04 point to 107.62.

• The most liquid three-year Korean treasury bond yield added 1.5 basis points to 2.328%, while the benchmark 10-year yield rose 0.6 basis point to 2.696%.