South Korean shares set for biggest quarterly drop since early 2020

Shares in South Korea gave up early gains on Wednesday, according to Business Recorder, as rising bond yields weighed on sentiment. The benchmark KOSPI stood 3.01 points, or 0.04%, lower at 6,867.80 at 0253 GMT, after touching a 1.4% rise earlier in the session. The index has dropped 19% this quarter after six straight quarterly gains, putting it on course for its steepest quarterly decline since the opening quarter of 2020.

US equities closed marginally weaker on Tuesday while government bond yields kept climbing ahead of inflation and jobs figures. South Korea's finance minister said authorities were keeping a close eye on the bond market and would step in with stabilising steps if yields moved up too far. Separately, factory output in South Korea unexpectedly contracted in August.

Samsung Electronics lost 1.01% and wiped out its early gains, while SK Hynix rose 1.19% after advancing more than 3% earlier. Foreign investors were net sellers of shares worth 519.1 billion won ($382.99 million), and the won traded at 1,354.2 per dollar.