S.Korean shares fall on higher US Treasury yields; battery makers drop

Samsung SDI

02/07/2024 07:59

* 
      KOSPI falls, foreigners net sellers
    

        * 
      Korean won weakens against dollar
    

        * 
      South Korea benchmark bond yield falls
    

        * 
      For the midday report, please click  urn:newsml:reuters.com:*:nL1N3IU021
    

  
       SEOUL, July 2 (Reuters) - Round-up of South Korean
financial markets:
    
    ** South Korean shares fell on Tuesday, after two straight
sessions of gains, weighed by a rise in U.S. Treasury yields.
    ** The won weakened, while the benchmark bond yield fell
after weaker-than-expected inflation data.
    ** The benchmark KOSPI  .KS11  closed down 23.45 points, or
0.84%, at 2,780.86. It was the biggest daily percentage loss
since May 30.
    ** The yields on 10-year U.S. Treasury notes rose on Monday
to their highest levels since late May, as investors assessed a
greater likelihood of Donald Trump's win in this year's U.S.
presidential election.
    ** South Korea's consumer inflation weakened to an 11-month
low in June, coming in below market expectations and providing
some relief for policymakers.
    ** Most index heavyweights fell, including battery makers,
automakers and e-commerce firms. 
    ** "A steep rise in U.S. Treasury yields weighed on the
domestic market, while battery stocks fell on weak sales shown
in exports data from the previous day," said Huh Jae-hwan,
analyst, Eugene Investment Securities. 
    ** Battery maker LG Energy Solution  373220.KS , which won a
deal with Renault's  RENA.PA  electric vehicle unit, erased
early gains of more than 4% to end down 1%. Peers Samsung SDI
 006400.KS  and SK Innovation  096770.KS  shed 4.22% and 2.95%,
respectively.  
    ** Chipmaker Samsung Electronics  005930.KS  ended flat, as
the impact from a declaration of a strike by a workers' union in
South Korea was not yet clear.
    ** Samsung Biologics  207940.KS  jumped 6.72%, posting its
biggest jump in nearly a year, to close at its highest since
April 8, after the biopharmaceutical manufacturer won an order
worth 1.46 trillion won ($1.05 billion), its biggest-ever, from
a U.S. pharmaceutical firm. 
    ** Foreigners were net sellers of shares worth 30 billion
won.
    ** The won was quoted at 1,388.2 per dollar on the onshore
settlement platform  KRW=KFTC , 0.32% lower than its previous
close at 1,383.8.
    ** The most liquid three-year Korean treasury bond yield
fell by 4.7 basis points to 3.166%, while the benchmark 10-year
yield fell by 2.1 basis points to 3.290%.

($1 = 1,388.4700 won)

 (Reporting by Jihoon Lee; Editing by Mrigank Dhaniwala)
 ((jihoon.lee@thomsonreuters.com;))