Round-up of South Korean financial markets:
** South Korean shares and won weakened more than 1% on Thursday, amid a broader decline in Asian markets, after the U.S. inflation data did little to allay investor concerns over policy tightening and economic growth. The benchmark bond yield also dropped.
** The KOSPI ended down 42.19 points, or 1.63%, to 2,550.08, its lowest close since Nov. 19, 2020.
** The benchmark index fell for an eighth straight session, logging the longest losing streak since mid-August 2021.
** U.S. consumer price growth slowed sharply in April as gasoline eased off record highs, suggesting inflation had probably peaked, though it is likely to stay hot for a while and keep the Federal Reserve's foot on the brakes to cool demand.
** The headline inflation seemed to have peaked but core prices accelerated, disappointing investors that there would be nothing to stop monetary tightening but an economic recession, said Huh Jae-hwan, analyst at Eugene Investment & Securities.
** South Korea is due to announce its second extra budget for this year later in the day, drawn up to pay small businesses for their losses due to COVID-19 restrictions.
** Among the heavyweights, technology giant Samsung Electronics and peer SK Hynix fell 1.22% and 1.36% respectively, while battery maker LG Energy Solution lost 0.89%. Internet platform operators Naver and Kakao dropped 3.23% and 5.50% each.
** Foreigners were net sellers of 279.3 billion won ($216.73 million) worth of shares on the main board.
** The won closed trading 1.03% lower at 1,288.6 per dollar on the onshore settlement platform, after hitting a 26-month low of 1,291.5. The currency marked its lowest close since July 14, 2009.
** In offshore trading, the won was quoted at 1,288.3 per dollar, down 0.7% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,288.2.
** In money and debt markets, June futures on three-year treasury bonds rose 0.07 points to 105.64 in late afternoon trade.
** The most liquid 3-year Korean treasury bond yield fell by 3.2 basis points to 2.903%, while the benchmark 10-year yield fell by 9.0 basis points to 3.183%. ($1 = 1,288.6800 won)
(Reporting by Jihoon Lee; Editing by Vinay Dwivedi)