South Korean shares end 4.5% lower as Iran ceasefire hopes fade

SEOUL: Round-up of South Korean financial markets:

• South Korean shares closed more than 4% lower on Thursday as hopes faded that the Iran war could end soon after US President Donald Trump vowed to continue hitting targets.
• The benchmark KOSPI closed down 244.65 points, or 4.47%, at 5,234.05, after steep losses triggered a sidecar trading curb during the session.
• The KOSPI opened higher but erased early gains of 1.75% after Trump’s speech on the Iran war.
• Trump said in a televised speech on Wednesday night that the US would continue to hit targets in the Islamic Republic over the next two to three weeks.
• “In particular, there was no solution offered on the risks around the Strait of Hormuz,” said Lee Kyoung-min, an analyst at Daishin Securities.
• South Korea’s inflation picked up less than expected in March as the government capped fuel prices, but policymakers and economists warned that risks remain tilted to the upside.
• South Korean President Lee Jae Myung urged parliament to promptly pass a 26.2 trillion won ($17.24 billion) supplementary budget to shore up the economy amid “the worst energy security threat” posed by the Middle East crisis.
• Among index heavyweights, chipmaker Samsung Electronics fell 5.91%, while peer SK Hynix lost 7.05%. Battery maker LG Energy Solution slid 0.61%.
• Foreigners were net sellers of shares worth 134.2 billion won.
• The won was quoted at 1,519.7 per dollar on the onshore settlement platform, 0.42% lower than its previous close at 1,513.3.
• South Korean authorities are prepared to respond sternly to excessive herd-like behaviour in the foreign exchange market, Vice Finance Minister Huh Chang said.
• The most liquid three-year Korean treasury bond yield rose by 11.3 basis points to 3.485%, while the benchmark 10-year yield rose by 11.7 basis points to 3.806%.