South Korean shares flat on US policy, bond market caution
- The benchmark KOSPI held its ground at 2,593.97
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%.