South Korean shares fall 1% as strong US data weakens rate bets

Kakao

13/01/2025 06:54

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      KOSPI falls, foreigners net sellers
    

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      Korean won strengthens 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:*:nL1N3O901Y
    

  
       SEOUL, Jan 13 (Reuters) - Round-up of South Korean
financial markets:
    
    ** South Korean shares dropped 1% on Monday, after strong
U.S. employment data weakened investor expectations of rate cuts
by the Federal Reserve this year. 
    ** The benchmark KOSPI  .KS11  closed down 26.22 points, or
1.04%, at 2,489.56. It was the biggest daily percentage fall
since Dec. 20, 2024. 
    ** U.S. job growth unexpectedly accelerated in December
while the unemployment rate fell to 4.1% as the labour market
ended the year on a solid footing, data showed on Friday,
reinforcing views that the Federal Reserve would keep interest
rates unchanged this month.    
    ** "The stock market went through correction, in reaction to
higher bond yields, but it is unlikely to swing to a bearish
trend as the Federal Reserve is still expected to resume rate
cuts later this year," said Park Kwang-nam, an analyst at Mirae
Asset Securities. 
    ** Back home, the Bank of Korea is scheduled to hold its
first monetary policy meeting of the year on Thursday, after two
straight meetings of interest rate cuts. 
    ** Among index heavyweights, chipmaker Samsung Electronics
 005930.KS  fell 2.17% and peer SK Hynix  000660.KS  lost 4.52%,
while battery maker LG Energy Solution  373220.KS  slid 0.29%.
    ** Of the total 943 traded issues, 262 shares advanced,
while 640 declined.
    ** Foreigners were net sellers of shares worth 876.0 billion
won ($595.48 million).
    ** The won was quoted at 1,470.8 per dollar on the onshore
settlement platform  KRW=KFTC , 0.08% higher than its previous
close at 1,472.0.
    ** In money and debt markets, March futures on three-year
treasury bonds  KTBc1  fell 0.20 point to 106.62.
    ** The most liquid three-year Korean treasury bond yield
 KR3YT=RR  rose 9.3 basis points to 2.654%, while the benchmark
10-year yield  KR10YT=RR  rose by 19.2 basis points to 2.874%.

    ($1 = 1,471.0900 won)

 (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)
 ((jihoon.lee@thomsonreuters.com;))