South Korean shares drop over 1% on heightened recession worries

Kitco Media
By Reuters
Published:
Updated:
Reuters



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KOSPI drops, foreigners net sellers

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Korean won weakens against dollar

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South Korea benchmark bond yield falls

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For the midday report, please click SEOUL, April 6 (Reuters) - Round-up of South Korean financial markets:


** South Korean shares ended more than 1% lower on Thursday, after weak economic indicators intensified recession worries. The Korean won weakened, while the benchmark bond yield fell.
** The benchmark KOSPI closed down 35.98 points, or 1.44%, at 2,459.23, retreating from its 7-1/2-month peak hit a day before.


** The U.S. services sector slowed more than expected in March, a survey showed overnight. Other data also showed private payrolls growth slowed considerably last month.
** The euro zone's recovery picked up pace last month, but the upturn was uneven across industries and countries, according to a survey that showed price pressures remained elevated in the region.
** "The market started to worry about recession, rather than monetary policy tightening, after recent bank-related risks," said analyst Seo Sang-young at Mirae Asset Securities.


** Technology giant Samsung Electronics fell 2.50%, peer SK Hynix lost 0.95%, and battery maker LG Energy Solution dropped 1.36%.
** Online platform operators Naver and Kakao slumped more than 3% each, while automakers Hyundai Motor and Kia Corp ended down 0.86% and 0.37%, respectively.
** Among index heavyweights, only biopharmaceutical stocks gained, with Samsung Biologics and Celltrion up 2.16% and 0.57%, respectively.


** Of the total 931 issues traded, 192 shares rose.
** Foreigners were net sellers of shares worth 480.1 billion won ($364.13 million).


** The won ended onshore trade at 1,319.1 per dollar, 0.65% lower than its previous close at 1,310.5.


** In money and debt markets, June futures on three-year treasury bonds rose 0.13 point to 105.14.
** The most liquid three-year Korean treasury bond yield fell by 5.3 basis points to 3.219%, while the benchmark 10-year yield fell by 4.9 basis points to 3.278%. ($1 = 1,318.4900 won) (Reporting by Jihoon Lee; Editing by Subhranshu Sahu)

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