S.Korean shares end lower amid rising yields, inflation worries
Tuesday, February 23, 2021       14:20 WIB

SEOUL, Feb 23 (Reuters) - South Korean shares closed lower on Tuesday, marking a negative finish for a fourth session in five, as the appeal of equities was dented amid higher bond yields and inflation outlook. The won weakened, while the benchmark bond yield rose.
The benchmark KOSPI closed 9.66 points, or 0.31%, lower at 3,070.09, partially recovering from early losses of as much as 1.44%.
Heavyweight Samsung Electronics slipped 0.24%, while peer SK Hynix and internet giant Naver added 1.47% and 1.03%, respectively.
Treasury yields rose on expectations that U.S. President Joe Biden's $1.9 trillion stimulus package would lead to stronger economic recovery, inflation and greater borrowing.
In South Korea, consumers' inflation expectations hit their highest since August 2019, data from the Bank of Korea showed.
The Korean central bank chief said he will consider stepping up government bond purchases if an increase in issuance adds to volatility in yields, but stopped short of offering a concrete plan.
Investors eye Federal Reserve Chairman Jerome Powell's Congressional testimony for clues about the central bank's stance on inflation expectations and rising yields.
Foreigners were net sellers of 374.3 billion won ($337.02 million) worth of shares on the main board.
The won ended at 1,110.6 per dollar on the onshore settlement platform, down 0.02%.
In offshore trading, the won was quoted at 1,110.6, while in non-deliverable forward trading, its one-month contract was quoted at 1,110.2.
In money and debt markets, March futures on three-year treasury bonds rose 0.01 point to 111.48.
The most liquid 3-year Korean treasury bond yield rose by 0.1 basis point to 1.021%, while the benchmark 10-year yield rose by 0.4 basis point to 1.925%. ($1 = 1,110.6100 won) (Reporting by Joori Roh; editing by Uttaresh.V)

Sumber : reuters.com