South Korean shares fall 2% as investors weigh Trump’s Fed chair choice

SEOUL: Round-up of South Korean financial markets:  

• South Korean shares dropped more than 2% on Monday, retreating from a four-day winning streak, as investors assessed the potential domestic market impact of US President Donald Trump’s selection of the next Federal Reserve chair.
• The won weakened more than 1%, while the benchmark bond yield rose.
• The benchmark KOSPI was down 112.87 points, or 2.16%, at 5,111.49 by 0155 GMT, marking its biggest intraday percentage fall since December 16, 2025.
• On Friday, the index closed at a record high for a fourth consecutive session.
• Analysts assume Kevin Warsh, Trump’s choice of the next central bank governor, is less likely to press for all-out rapid rate cuts than some other possible choices, though he has sounded more dovish than current chair Jerome Powell.
• “Initial reaction in financial markets is negative, seeing Warsh as a hawkish figure,” said Han Ji-young, an analyst at Kiwoom Securities.
• Among index heavyweights, chipmaker Samsung Electronics fell 2.43%, while peer SK Hynix lost 3.85%. Shares of battery maker LG Energy Solution slid 2.14%.
• Hyundai Motor and sister automaker Kia Corp were down 1.80% and 0.33%, respectively. Steelmaker POSCO Holdings shed 0.43%, while drugmaker Samsung BioLogics fell 0.97%. Of the total 925 traded issues, 197 shares advanced, while 692 declined.
• Foreigners were net sellers of shares worth 1.6 trillion won ($1.10 billion).
• The won was quoted at 1,458.2 per dollar on the onshore settlement platform, 1.01% lower than its previous close at 1,443.5.
• In money and debt markets, March futures on three-year treasury bonds lost 0.11 point to 104.83.
• The most liquid three-year Korean treasury bond yield rose by 4.6 basis points to 3.183%, while the benchmark 10-year yield climbed 7.5 basis points to 3.652%.