South Korean shares end nearly 1% lower on US inflation data

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell nearly 1% on Wednesday, tracking Wall Street’s overnight losses on signs of a tariff impact in U.S. inflation data.

The benchmark KOSPI closed down 28.90 points, or 0.90%, at 3,186.38.

U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September.

“If effective tariff rates continue to rise, that will add to inflation pressure and weigh on corporate earnings,” said Seo Sang-young, an analyst at Mirae Asset Securities.

South Korea’s finance minister nominee said he would bring regulatory improvements to the foreign exchange market, according to a media report.

South Korean shares close at near four-year high as Samsung Electronics jumps

Among index heavyweights, chipmaker Samsung Electronics rose 1.57%, but peer SK Hynix lost 0.84%. Battery maker LG Energy Solution slid 1.74%.

Hyundai Motor and sister automaker Kia Corp were down 1.66% and 0.50%, respectively. Steelmaker POSCO Holdings shed 4.83%, while drugmaker Samsung BioLogics rose 0.19%.

Securities firms dropped 5.21%, while financial groups fell 2.68%, on profit-taking pressure.

Of the total 934 traded issues, 191 shares advanced, while 706 declined.

Foreigners were net buyers of shares worth 26.8 billion won ($19.34 million).

The won was quoted at 1,385.7 per dollar on the onshore settlement platform, 0.18% higher than its previous close at 1,388.2.

In money and debt markets, September futures on three-year treasury bonds were unchanged at 107.18.

The most liquid three-year Korean treasury bond yield was flat at 2.463%, while the benchmark 10-year yield rose by 0.9 basis point to 2.884%.