PHOTO
A currency dealer, wearing a mask to avoid the spread of the coronavirus disease (COVID-19), works in front of electronic boards showing the Korea Composite Stock Price Index (KOSPI) at a bank in Seoul, South Korea, September 10, 2020. Kim Hong-Ji, Reuters
Round-up of South Korean financial markets:
** South Korean shares fell on Monday, as investor hopes for early U.S. rate cuts weakened after stronger-than-expected employment data. The won weakened, while the benchmark bond yield rose.
** The benchmark KOSPI closed down 21.50 points, or 0.79%, at 2,701.17.
** The U.S. economy created far more jobs than expected in May and annual wage growth re-accelerated, underscoring the labour market's resilience and reducing the likelihood the Federal Reserve will be able to start rate cuts in September.
** The odds of a September rate cut fell to about 53% from about 70% before the report, and traders now see roughly an even chance of two rate cuts by the end of 2024, versus about a 68% chance earlier.
** "Higher U.S. Treasury yields on strong jobs data weighed on the local market," said Na Jeong-hwan, an analyst at NH Investment Securities. "Investors are cautious with U.S. inflation data and the Fed's policy meeting ahead."
** Chipmaker Samsung Electronics fell 2.07%, but peer SK Hynix gained 0.24%, while battery maker LG Energy Solution declined 1.67%.
** Among other index heavyweights, automakers gained, but e-commerce firms and biopharmaceutical manufacturers fell.
** Of the total 933 traded issues, 379 shares advanced while 500 declined.
** Foreigners were net buyers of local shares, by a marginal amount of 18.9 billion won ($13.7 million) on the main board.
** The won ended onshore trade at 1,376.0 per dollar, 0.78% lower than its previous close at 1,365.3. The currency snapped a four-session winning streak.
** In money and debt markets, June futures on three-year treasury bonds fell 0.17 point to 104.57.
** The most liquid three-year Korean treasury bond yield rose by 4.0 basis points to 3.352%, while the benchmark 10-year yield rose by 3.9 bps to 3.426%. ($1 = 1,375.7900 won) (Reporting by Jihoon Lee; Editing by Varun H K)