South Korean stocks extend losses on Fed, BOK rate hike

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  • Fall of KOSPI, foreign net sellers
  • Korean won weakens against US dollar
  • South Korea’s benchmark bond yields decline

SEOUL, Nov. 25 (Reuters) – Overview of South Korean financial markets:

** South Korean stocks fell on Thursday, as minutes from the last US Federal Reserve meeting revealed hawkish trends in the board, while the Bank of Korea’s rate hike and revision Rising inflation expectations in 2022 have bolstered bets on further tightening.

** The Korean won weakened and the benchmark bond yield also declined.

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** The benchmark KOSPI (.KS11) was down 13.87 points, or 0.46%, to 2,980.42, 0221 GMT, set for the third consecutive session of decline.

** Chip giants Samsung Electronics (005930.KS) and SK Hynix (000660.KS) fell 1.20% and 0.84%, leading the declines, while LG Chem (051910.KS) also slipped by 0.94%.

** South Korea’s central bank raised interest rates and sharply revised upward its inflation outlook for next year to 2.0% on Thursday, as concerns over rising debt households and prices foreshadowed further policy tightening next year. Read more

** This comes after a rate hike in New Zealand, the second time in two months, and various Fed policymakers saying they would be willing to speed up their reduction in their bond buying program and increase the rate if inflation problems persist. Read more

** Foreigners were net sellers of 87.5 billion won ($ 73.53 million) of shares on the main board.

** The won was listed at 1,189.9 to the dollar on the onshore settlement platform, down 0.29% from its previous close at 1,186.5.

** In offshore trading, the won was listed at 1190.0 per dollar, down 0.1% from the previous day, while in undeliverable futures trading, its one-month contract was listed at 1190.4.

** In money and debt markets, December three-year Treasury bond futures rose 0.12 points to 108.52.

** The most liquid 3-year Korean Treasury bond yield fell 3.7 basis points to 1.976%, while the benchmark 10-year yield fell 0.9 basis points to 2.385%.

($ 1 = 1,189 9200 earned)

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Reporting by Joori Roh; Editing by Sherry Jacob-Phillips

Our Standards: Thomson Reuters Trust Principles.


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