Interest rates

Kospi slumps on inflation and interest rate fears

A screen in the Hana Bank trading floor in central Seoul shows the Kospi closing at 2,693.10 points on Monday, down 7.29 points, or 0.27%, from the previous trading day. [NEWS1]

Stocks ended lower on Monday as investors worried about aggressive monetary tightening from the U.S. central bank and China’s growth momentum amid high inflation. The won fell against the dollar.

The benchmark Kospi lost 7.29 points, or 0.27%, to close at 2,693.10 points.

Trading volume moderated to around 730.8 million shares worth around 8.7 trillion won ($7.1 billion), with losers outnumbering winners by 438 to 399 .

Foreigners sold shares worth 135.4 billion won, while retail and institutional investors bought shares worth 125.5 billion won and 2.7 billion won, respectively.

Investors were wary of warnings from the Federal Reserve of faster-than-expected belt tightening to curb inflation, stoking fears of slowing global economic growth.

High inflation in China is another source of concern.

Earlier today, China said its producer price index jumped 8.3% year-on-year in March and the consumer price index rose 1.5%, both higher than expected.

“Inflation uncertainties have continued in both the US and Chinese markets. Investors appear to have taken a cautious stance as well ahead of the Bank of Korea’s rate-setting meeting this week and the peak earnings season for stocks. businesses,” the NH Investment & Securities analyst said. said Kim Young-hwan.

Samsung Electronics edged up 0.15% to 67,900 won after a four-day losing streak, while chipmaker SK hynix fell 0.45% to 111,500 won.

LG Energy Solution fell 3.30% to 425,000 won and Samsung SDI fell 2.66% to 585,000 won.

Hyundai Motor rose 1.70% to 179,500 won and its subsidiary Kia jumped 3.47% to 77,500 won.

The local currency closed at 1,233.1 won against the dollar, up 8.0 won from the previous session’s close.

The Kosdaq lost 12.90 points, or 1.38%, to close at 921.83 points.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 19.2 basis points to 3.177%, and the yield on the benchmark 10-year government bond rose 4.6 basis points to 2.70 %.

BY SHIN HA-NEE, YONHAP [[email protected]]