South Korean shares fall 1.16% as chip stocks retreat

South Korean shares fell 66.34 points, or 1.16%, to 5,669.32 on Thursday as chip stocks retreated after the previous session's rise. The Bank of Korea kept its benchmark interest rate unchanged after quarter-point rate hikes in July and August. Attention turned to the central bank's policy guidance and its assessment of chip-led economic expansion.

Bank of Korea holds rate as 7:40 AM IST guidance is awaited

The KOSPI fell 66.34 points, or 1.16%, to 5,669.32 as of 6:56 AM IST on Thursday, Reuters reported.

The Bank of Korea kept its benchmark interest rate unchanged on Thursday after quarter-point rate hikes in July and August, according to the Bank of Korea.

Governor Shin Hyun Song's press conference was scheduled for 0210 GMT, or 7:40 AM IST, Reuters reported. Investors awaited further clues on the rate trajectory and the outlook for South Korea's chip-led economic expansion.

Samsung and SK Hynix fall as large stocks retreat

The shares of Samsung Electronics fell 1.34% and SK Hynix declined 1.93%, according to a Reuters report.

South Korea’s key stock performers dropped today: LG Energy Solution fell 3.77%, Hyundai Motor Company fell 2.58%, and Kia Motors lost 1.18% on the day, according to Reuters.

Foreign investors bought more shares than they sold for 107.4 billion won ($80.97 million) in the day’s trading, according to Reuters. Of 910 traded stocks, 528 fell while 322 rose.

Won at 1,326.2 as Korean bond yields fall

The Korean won traded on the onshore settlement platform at 1,326.2 per dollar in late trade, down 0.02% from yesterday’s close of 1,326.0, Reuters reported.

Three-year Treasury futures for December were up 0.05 at 103.19, Reuters reported.

The yield on the three-year Korean Treasury bond fell 3.3 basis points to 3.799%, while the benchmark 10-year yield declined 3.1 basis points to 4.136%, Reuters reported.

KOSPI had risen 3.3% in the previous session

The KOSPI gained 3.3% on Wednesday, its biggest one-day gain in the past six weeks or so, in large part due to a bounce in the semiconductor stocks, Reuters wrote.

Reuters reported that investors booked profits in chipmakers after the previous session's gains.

The semiconductor industry was driving growth, while inflation remained above the central bank's target, according to Reuters.

Reuters reported that the possibility of further monetary tightening remained open.