Seoul stocks sink over 1% on US bond yield woes
Published : Jan 5, 2022 - 16:07
Updated : Jan 12, 2022 - 09:42

Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (Kospi) closed at 2,953.97 on Wednesday, down 35.27 points or 1.18 percent from the previous session's close. (Yonhap)
South Korean stocks retreated Wednesday on worries the rising long-term bond yields in the United States may hasten the Federal Reserve's tapering move. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) declined 35.27 points, or 1.18 percent, to close at 2,953.97 points.

Trading volume was moderate at about 774 million shares worth some 14.6 trillion won ($12.2 billion), with losers outnumbering gainers 554 to 319.

Institutions dumped a net 1.3 trillion won, while foreigners bought 29 billion won and retail investors purchased 1.3 trillion won.

Trading opened weak on declines in tech, tracking overnight tech losses on Wall Street.

A continued rise in the US 10-year Treasury yields pulled down the tech-laden NASDAQ by 1.33 percent, reminding investors of the US Fed's imminent rate hikes.

"The local stock market is pressured and influenced by the US bond yields (in today's session)," said NH Investment & Securities analyst Kim Young-hwan.

In Seoul, top cap Samsung Electronics lost 1.65 percent to 77,400 won, and No. 2 chipmaker SK hynix decreased 2.33 percent to 125,500 won.

Internet portal operator Naver retreated 2.87 percent to 355,000 won, with its rival Kakao slumping 5.38 percent to 105,500 won. Pharmaceutical giant Samsung Biologics declined 3.04 percent to 861,000 won.

Among gainers, leading carmaker Hyundai Motor added 1.67 percent to 213,500 won, and electric car battery maker LG Chem jumped 3.11 percent to 664,000 won.

The local currency closed at 1,196.9 won against the US dollar, down 2.8 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 4.5 basis points to 1.913 percent, and the return on the benchmark five-year government bond rose 6.1 basis points to 2.152 percent. (Yonhap)