South Korean shares fall more than 2% as chipmakers drop

SEOUL: Round-up of South Korean financial markets:

South Korean shares fell more than 2% on Monday as chipmakers dropped amid worries about high bond yields, in catch-up trading following a holiday break.

The benchmark KOSPI was down 150.83 points, or 2.13%, at 6,930.09 as of 0122 GMT, after a four-session gaining streak to a two-month high. South Korean financial markets were closed on Thursday and Friday for Chuseok holidays.

Investors’ focus is on South Korea’s export data and Micron Technology’s earnings due later this week for clues on an AI-driven chip boom, analysts say.

Wall Street ended higher on Friday, lifted by Microsoft and other AI-related technology stocks, while high oil prices and a recent surge in US Treasury yields kept investors on edge.

The Bank of Korea said on Monday the central bank would closely monitor financial and foreign exchange markets.

Chipmaker Samsung Electronics fell 3.94%, while peer SK Hynix lost 4.67%.

Among other index heavyweights, battery maker LG Energy Solution climbed 3.20%, while Hyundai Motor and sister automaker Kia Corp were up 0.42% and up 0.78%, respectively.

Steelmaker POSCO Holdings added 1.28%, while drugmaker Samsung BioLogics rose 1.39%.

Of the total 912 traded issues, 630 shares advanced, while 245 declined. Foreigners were net sellers of shares worth 811.3 billion won ($597.09 million).

The won was unchanged at 1,357.0 per dollar on the onshore settlement platform.

In money and debt markets, December futures on three-year treasury bonds lost 0.37 point to 102.05.

The most liquid three-year Korean treasury bond yield rose by 11.6 basis points to 4.114%, while the benchmark 10-year yield rose by 13 basis points to 4.539%.