South Korean shares track Wall Street’s losses on US debt worries
- The benchmark KOSPI closed down 31.91 points, or 1.22%, at 2,593.67
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%.