South Korean shares track Wall Street’s losses on US debt worries

SEOUL: Round-up of South Korean financial markets:

• South Korean shares fell more than 1% on Thursday, tracking Wall Street’s overnight losses on worries about US government debt with a focus on President Donald Trump’s tax-cut bill.

• The benchmark KOSPI closed down 31.91 points, or 1.22%, at 2,593.67, marking its biggest daily percentage fall since April 9.

• US stocks closed sharply lower on Wednesday as Treasury yields spiked on worries that US government debt would swell by trillions of dollars if Congress passes President Donald Trump’s proposed tax-cut bill.

• Republicans who control the US House of Representatives have scheduled two key pre-dawn Thursday floor votes for Trump’s sweeping tax and spending bill, including a vote to pass the legislation and send it to the Senate.

• “The local market was weighed by fears of heightening volatility in the US bond market,” said Seo Sang-young, an analyst at Mirae Asset Securities.

• Among index heavyweights, chipmaker Samsung Electronics fell 1.80%, while peer SK Hynix also lost 1.80%. Battery maker LG Energy Solution slid 1.08%.

• Samsung Biologics closed down 1.82%, after the drugmaker announced a plan to separate the company into contract manufacturing and development companies, to help allay customer concerns about conflicts of interest between businesses.

• Hyundai Motor and sister automaker Kia Corp were down 2.98% and 2.19%, respectively. Steelmaker POSCO Holdings shed 1.04%.

• Of the total 937 traded issues, 258 shares advanced, while 635 declined.

• Foreigners were net sellers of shares worth 483.2 billion won ($350.4 million).

• The won was quoted at 1,381.3 per dollar on the onshore settlement platform, 0.69% lower than its previous close at 1,371.8.

• The most liquid three-year Korean treasury bond yield rose by 0.1 basis point to 2.346%, while the benchmark 10-year yield rose by 3 basis points to 2.794%.