South Korean shares fall more than 1% on US chip control, weak exports

Published on 09/01/2025 at 02:59 am EDT

• KOSPI falls, foreigners net sellers
• Korean won weakens against dollar
• South Korea benchmark bond yield rises

(Reuters) - Round-up of South Korean financial markets:
** South Korean shares fell more than 1% on Monday as chipmakers dropped on a U.S. move to regulate exports to China, while weaker-than-expected trade data also weighed on sentiment.
** The benchmark KOSPI lost 43.08 points, or 1.35%, to 3,142.93, marking its biggest daily percentage loss since August 18.
** Chipmaker Samsung Electronics fell 3.01% and peer SK Hynix lost 4.83% after Washington revoked authorisations that allowed them to secure U.S. semiconductor manufacturing equipment for their chip plants in China.
** "The issue triggered a sell-off amid already weak investor sentiment around the semiconductor industry after Nvidia's earnings," said Lee Seong-hoon, an analyst Kiwoom Securities.
** On the macroeconomic front, South Korea's export growth in August slowed more than markets had anticipated as U.S.-bound shipments suffered their sharpest decline since the COVID-19 pandemic due to the trade tariffs, data showed.
** South Korea's factory activity weakened for the seventh consecutive month in August as overseas demand dropped on U.S. President Donald Trump's higher tariffs, a survey showed.
** Among other index heavyweights, battery maker LG Energy Solution fell 0.85% and steelmaker POSCO Holdings shed 1.58%. Hyundai Motor and sister automaker Kia added 0.23% and 0.66%, respectively.
** Of the total 933 traded issues, 201 advanced and 696 declined.
** Foreigners were net sellers of shares worth 272.1 billion won ($196 million).
** The won was quoted at 1,393.7 per dollar on the onshore settlement platform, 0.28% lower than Friday's close of 1,389.8.
** The most liquid three-year Korean treasury bond yield rose 1.0 basis point to 2.435%, while the benchmark 10-year yield gained 2.3 basis points to 2.850%. ($1 = 1,388.1500 won)
 (Reporting by Jihoon Lee; Editing by Sumana Nandy) 

Sumber : Reuters