Round-up of South Korean financial markets:

 

** South Korean shares fell for a sixth straight session on Tuesday to a 19-month low, weighed down by mounting fears of much faster monetary policy tightening in the United States ahead of a Federal Reserve meeting this week. The Korean won touched its weakest level since March 2020, while the benchmark bond yield hit a more than eight-year high.

 

** The benchmark KOSPI ended down 11.54 points, or 0.46%, at 2,492.97, after falling as much as 1.88% in early trade. The index posted its lowest close since Nov. 12, 2020.

 

** Eroding inflation data and fast-changing views in financial markets on Monday have opened the door to a larger-than-expected three-quarter-percentage point interest rate increase when Federal Reserve officials meet this week.

 

** The market seemed to have over-reacted a bit in early trade before recovering some losses amid dip-buying sentiment, said Mirae Asset Securities' analyst Seo Sang-young.

 

** South Korea's finance ministry and central bank said they would take necessary measures to stabilise financial markets if volatility increases.

 

** Among heavyweights, technology giant Samsung Electronics fell 0.32% while peer SK Hynix rose 0.10%.

 

** LG Energy Solution rose 2.77% after the battery maker announced an investment plan of 730 billion won ($567.53 million) to expand its production capacity.

 

** Foreigners were net sellers of 273.2 billion won ($212.40 million) worth of shares on the main board.

 

** The won was last quoted at 1,286.4 per dollar on the onshore settlement platform, 0.19% lower than the previous session, after touching the lowest since March 19, 2020 at 1,292.5.

 

** In money and debt markets, June futures on three-year treasury bonds fell 0.07 point to 104.07 in late afternoon trade.

 

** The most liquid 3-year Korean treasury bond yield rose by 7.8 basis points to 3.561%, after touching the highest since late August 2011, while the benchmark 10-year yield rose by 5.2 basis points to 3.696%, after hitting the highest since early December 2013. ($1 = 1,286.2700 won) (Reporting by Jihoon Lee; Editing by Subhranshu Sahu)


Reuters