South Korean shares end week lower after Fed signals slower rate cuts

Kakao

20/12/2024 07:01

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      KOSPI falls, foreigners net sellers
    

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      Korean won weakens against dollar
    

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      South Korea benchmark bond yield rises
    

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      For the midday report, please click  urn:newsml:reuters.com:*:nL1N3NL036
    

  
       SEOUL, Dec 20 (Reuters) - Round-up of South Korean
financial markets:
    
    ** South Korean shares fell more than 1% on Friday and ended
the week with the biggest loss since mid-November, after the
U.S. Federal Reserve signalled slower cuts in interest rates.
    ** The won weakened, while the benchmark bond yield rose.
    ** The benchmark KOSPI  .KS11  closed down 31.78 points, or
1.30%, at 2,404.15, its lowest level since Dec. 9. 
    ** The KOSPI fell 2.3% this week, the worst weekly
performance in five weeks. 
    ** The U.S. economy grew faster than previously estimated in
the third quarter, driven by robust consumer spending, data
showed on Thursday, a day after the Federal Reserve projected
only two rate reductions in 2025, citing the economy's continued
resilience and still-high inflation.  
    ** "The market is in a vicious cycle of foreign outflows and
local currency weakness amid weakening policy momentum at home
and slower rate cuts in the United States," said Park Kwang-nam,
an analyst at Mirae Asset Securities. 
    ** South Korea's financial authorities said on Friday they
would loosen foreign exchange regulations and allow more
corporate borrowings abroad, in a bid to defend the won, which
is trading at a 15-year low, with improved liquidity.  
    ** Among index heavyweights, chipmaker Samsung Electronics
 005930.KS  fell 0.19% and peer SK Hynix  000660.KS  lost 3.71%,
while battery maker LG Energy Solution  373220.KS  slid 3.90%.
    ** Of the total 940 traded issues, 205 shares advanced,
while 707 declined.
    ** Foreigners were net sellers of shares worth 817.2 billion
won ($563.28 million).
    ** The won was quoted at 1,451.4 per dollar on the onshore
settlement platform  KRW=KFTC , 0.28% lower than its previous
close at 1,447.3.
    ** The most liquid three-year Korean treasury bond yield
 KR3YT=RR  rose by 1.5 basis points to 2.621%, while the
benchmark 10-year yield  KR10YT=RR  increased by 6.2 basis
points to 2.869%.

($1 = 1,450.7900 won)

 (Reporting by Jihoon Lee; Editing by Abinaya Vijayaraghavan)
 ((jihoon.lee@thomsonreuters.com;))