South Korea shares drop on oil, bond rout concerns

Business Recorder reported that South Korean equities were trading lower on Friday as a sell-off in US treasuries and fresh inflation data from America raised bets on an early Federal Reserve rate increase. By 03:25 GMT the KOSPI had shed 189.90 points, or 2.78 per cent, to reach 6,844.02. Chipmaker Samsung Electronics dropped 4.46 per cent, while rival SK Hynix slid 4.21 per cent.

Other index heavyweights also declined, with battery maker LG Energy Solution down 3.42 per cent and Hyundai Motor and Kia Corp falling 2.70 per cent and 1.02 per cent respectively. Steelmaker POSCO Holdings lost 2.06 per cent and drugmaker Samsung BioLogics eased 1.41 per cent. Overseas investors sold a net 1,661.1 billion won ($1.23 billion) of shares, while the won firmed 0.30 per cent to 1,345.4 per dollar.

Oil prices rose more than 6 per cent on Thursday, with both main benchmarks above $100 a barrel, after attacks on vessels reached their highest level since the Iran conflict began, raising fears of further supply disruptions. Business Recorder cited a Wall Street Journal report saying the South Korean government will soon reveal an energy investment plan in the United States exceeding $100 billion, aimed at supporting artificial intelligence growth. Bond markets also weakened, with the benchmark 10-year yield climbing 9.9 basis points to 4.554 per cent.