*
KOSPI falls 1%
*
Korean won drops to lowest in nearly two months
*
South Korea benchmark bond yield hits six-week high
*
For the midday report, please click SEOUL, Feb 17 (Reuters) - Round-up of South Korean
financial markets:
** South Korean shares, currency, and treasury bonds tumbled
on Friday, as fears grew after a set of data and officials'
comments that the U.S. Federal Reserve might deliver more
interest rate hikes than previously thought.
** The benchmark KOSPI closed 24.27 points, or
0.98%, lower at 2,451.21.
** For the week, the KOSPI shed 0.75%, extending its weekly
losses to a three and marking the worst week for this year so
far.
** Two Fed officials said on Thursday the central bank
likely should have lifted interest rates more than it did early
this month.
** U.S. producer prices increased by the most in seven
months in January, data also showed. Even stripping out volatile
components, underlying producer inflation rose at its fastest
pace since last March.
** "There are worries that the Fed may raise interest rates
to higher levels than market expectations," said Park Kwang-nam,
an analyst at Mirae Asset Securities. "The U.S. economy is
stronger than expected."
** Meanwhile, South Korea's finance ministry official said
on Friday the won's volatility was excessive and likely due to
herd-like behaviours in the forex market.
** Foreigners were net buyers of local shares, by a small
margin of 48.0 billion won ($36.91 million).
** The won ended onshore trade 1.13% lower at
1,299.5 per dollar, after falling as much as 1.46% to 1,303.8,
the weakest level since Dec. 20, 2022.
** The currency fell 2.64% this week, extending its 2.83%
loss from last week.
** In money and debt markets, March futures on three-year
treasury bonds fell 0.39 point to 103.71.
** South Korea's treasury bond yields soared to their
highest levels since early-January.
** The most liquid three-year yield rose by as much as 17.3
basis points to 3.678%, and the benchmark 10-year yield rose by
19.0 basis points to 3.666%.
($1 = 1,300.6200 won)
(Reporting by Jihoon Lee; editing by Uttaresh.V)
