South Korean stocks fall as Fed’s hawkish view raises US yields and the dollar

  • KOSPI falls, foreigners net buyers
  • Korean won weakens against US dollar
  • South Korea’s benchmark bond yield rises

SEOUL, Jan.6 (Reuters) – Overview of South Korean financial markets:

** South Korean stocks fell on Thursday, weighed down by high US yields and a stronger dollar, as the Federal Reserve meeting minutes signaled an earlier-than-expected rate hike, dampening appetite for riskier assets.

** The Korean won weakened to its lowest level in more than 17 months, heightening concerns about capital outflows and financial market instability. The yield on the benchmark bond increased.

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** At 0212 GMT, the benchmark KOSPI (.KS11) was down 7.91 points, or 0.27%, to 2,946.06, after falling 1.18% in the previous session .

** Among heavyweights, chip giant Samsung Electronics (005930.KS) slipped 0.13%, while platform companies Naver (035420.KS) and Kakao (035720.KS) were down 3% respectively , 24% and 4.27%.

** According to the minutes of the Fed policy meeting in December, policymakers at the US central bank said a “very tight” job market and uninterrupted inflation could force it to raise rates sooner and start reducing its overall holdings as a second drag on the economy. Read more

** Foreigners were net buyers of 78.4 billion won ($ 65.42 million) of shares on the main board.

** Institutional investors went net buyers for the first time in six days, ending their ex-dividend sale of shares on December 29. They sold a net total of 5.38 trillion won ($ 4.49 billion) of shares during their sale. party.

** Only those who bought stocks before December 28 can receive dividend payments, which has led to a buying frenzy by institutional and foreign investors.

** The won was traded at 1,198.4 to the dollar on the onshore settlement platform, down 0.13% from its previous close.

** Earlier in the session, unity weakened to 0.37% at its lowest level since July 27, 2020.

** In offshore trading, the won was listed at 1198.4, while in undeliverable futures trading, its one-month contract was listed at 1199.3.

** In money and debt markets, March three-year Treasury bond futures fell 0.21 points to 108.44.

** The most liquid 3-year Korean Treasury bond yield rose 6.3 basis points to 1.976%.

($ 1 = 1,198 3200 earned)

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Reporting by Joori Roh; Editing by Sherry Jacob-Phillips

Our Standards: Thomson Reuters Trust Principles.

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