[Seoul] South Korean shares marked their worst session in a week on Tuesday (February 22) as investors turned to safe-haven assets after tensions between Russia and Ukraine deepened. Korean wins weakened, while benchmark bond yields fell.
The benchmark Kospi closed at 2,706.79, down 37.01 points, or 1.35 per cent, after falling 1.96 per cent on the day. So far this year, it has declined by 9.1 per cent.
Leading the decline, chip giants Samsung Electronics and SK Hynix fell 1.08 percent and 1.15 percent, respectively, while battery maker LG Energy Solutions fell 2.87 percent.
Russian President Vladimir Putin on Monday recognized two separate regions in eastern Ukraine as independent and ordered the Russian military to launch a peacekeeping operation in what Moscow called a peacekeeping operation in the region. The West fears to intensify a crisis could start a major war.
South Korea continued to report nearly 100,000 new daily Covid-19 infections, but officials are easing social distancing rules a bit ahead of next month's presidential election.
Meanwhile, after back-to-back hikes in the last two meetings, the Bank of Korea is expected to take a peek at its rate decision meeting on Thursday, a Reuters poll showed.
Foreigners were net sellers of shares on the main board valued at Won 326.1 billion (S$368.2 million).
Won on the onshore settlement platform ended at 1,192.7 per dollar, down 0.05 percent from the previous close.
In offshore trading, the won was quoted at 1,192.8, while in non-deliverable forward trading, its 1-month contract was quoted at 1,193.3.
March futures on 3-year Treasury bonds rose 0.12 points to 107.72 in money and debt markets.
The benchmark 10-year yield fell 5.5 basis points to 2.719 per cent. Reuters