South Korean shares flat on US policy, bond market caution

SEOUL: Round-up of South Korean financial markets:

• South Korean shares were flat on Friday, weighed by caution over US President Donald Trump’s tax-cut bill and remarks from a South Korean minister that officials are monitoring the domestic impact of US bond market volatility.

• The benchmark KOSPI held its ground at 2,593.97, as of 0214 GMT.

• US stocks closed a choppy session little changed on Thursday, erasing initial declines as Treasury yields eased off recent highs after the House of Representatives passed Trump’s tax and spending bill.

• South Korea pledged on Wednesday more support measures for key export industries such as biopharmaceuticals and autos, as Trump’s sweeping tariffs weigh on the trade-reliant economy.

• Acting Finance Minister Kim Beom-seok said on Friday that authorities plan to closely monitor domestic market impact from heightened volatility in the Unites States and Japan bond markets.

• Among index heavyweights, South Korean chipmaker Samsung Electronics fell 0.18%, while peer SK Hynix gained 1.22%. Battery maker LG Energy Solution slid 2.37%.

• Shares of Hyundai Motor and sister automaker Kia Corp were down 1.43% and 1.79%, respectively. Steelmaker POSCO Holdings shed 1.68% and drugmaker Samsung BioLogics fell 3.15%.

• Of the total 937 traded issues, 510 shares advanced, while 387 declined.

• Foreigners were net sellers of shares worth 39.6 billion won ($28.77 million).

• The won was quoted at 1,376.8 per dollar on the onshore settlement platform, 0.43% higher than its previous close at 1,382.7.

• In money and debt markets, June futures on three-year treasury bonds lost 0.03 point to 107.55.

• The most liquid three-year Korean treasury bond yield was flat at 2.336%, while the benchmark 10-year yield rose by 2.2 basis points to 2.766%.