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%.

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