South Korean shares end lower as chipmakers drag, bond yields jump

Reuters

South Korean shares end lower as chipmakers drag, bond yields jump

27Ago2024658 GMT

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KOSPI falls, foreigners net sellers

Korean won weakens slightly against U.S. dollar

South Korea benchmark bond yield rises

For the midday report, please click nL1N3KE02T

SEOUL, Aug 27 (Reuters) -Round-up of South Korean financial markets:

** South Korean shares fell on Tuesday as heavyweight chipmakers tracked Nvidia's NVDA.O weakness ahead of the U.S. artificial intelligence firm's quarterly earnings this week.

** The won traded marginally lower, while the benchmark bond yield jumped to a one-month high after the government's budget proposal for next year.

** The benchmark KOSPI .KS11 closed down 8.76 points, or 0.32%, at 2,689.25, extending losses for the third straight session.

** South Korea's government plans to raise budget spending to $510 billion for 2025, although the pace of growth is less than previously projected, as Seoul seeks to tighten fiscal discipline.

** In the proposal announced on Tuesday, the government said it plans to issue 201.3 trillion won ($151.22 billion) of treasury bonds in 2025, sharply up from 158.4 trillion won planned for this year.

** "The market was in a wait-and-see mood, with semiconductor stocks falling ahead of Nvidia earnings," said Seo Sang-young, an analyst at Mirae Asset Securities.

** Chipmaker Samsung Electronics 005930.KS fell 0.39% and peer SK Hynix 000660.KS lost 2.56%, after Nvidia fell more than 2% overnight.

** SK Innovation 096770.KS, the parent of the country's largest oil refiner and battery maker SK On, climbed 3.10%, after its shareholders approved a merger with energy affiliate SK E&S as part of a major restructuring of the conglomerate.

** Automakers and e-commerce firms also declined.

** Of the total 937 traded issues, 437 shares rose, while 424 fell.

** Foreigners were net sellers of shares worth 407.9 billion won.

** The won was quoted at 1,331.0 per dollar on the onshore settlement platform KRW=KFTC, 0.09% lower than its previous close at 1,329.8.

** The most liquid three-year Korean treasury bond yield rose by 5.6 basis points to 2.947%, while the benchmark 10-year yield rose jumped 10.5 basis points to 3.079%, hitting its highest since July 26.

($1 = 1,331.2000 won)

Reporting by Jihoon Lee; Editing by Sonia Cheema

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