South Korea shares fall amid Russia-Ukraine peace deal uncertainty, ahead of Fed meet

Published on 08/19/2025 at 03:18 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 declined on Tuesday amid uncertainty over U.S. President Donald Trump's talks with Russia and Ukraine on a potential peace deal, while investors awaited the Federal Reserve's annual Jackson Hole symposium. The won weakened, while the benchmark bond yield climbed.
** The benchmark KOSPI lost 25.72 points, or 0.81%, to close at 3,151.56.
** Among index heavyweights, chipmaker Samsung Electronics was flat and peer SK Hynix shed 1.68%. Battery maker LG Energy Solution added 0.26%.
** On Monday, Trump told President Volodymyr Zelenskiy that the United States would help guarantee Ukraine's security in any deal to end Russia's war, though the extent of any assistance was not immediately clear.
** Meanwhile, the Jackson Hole conference in Wymoing on August 21-23, where Fed Chair Jerome Powell is expected to speak, could offer further clarity on the economic outlook and the central bank's policy framework.
** South Korea is an export-dependent economy and the blue-chip KOSPI has gained more than 30% so far this year on easing political uncertainties.
** In Seoul, Hyundai Motor and sister automaker Kia rose 1.15% and 1.76%, respectively. Steelmaker POSCO Holdings gained 0.17% and drugmaker Samsung BioLogics fell 0.39%.
** Of the total 934 traded issues, 271 advanced and 613 declined.
** Foreigners were net sellers of shares worth 453.5 billion won ($326.2 million).
** The won was quoted at 1,390.9 per dollar on the onshore settlement platform, 0.2% lower than Monday's close at 1,388.1.
** In offshore trading, the won was quoted at 1,390.4, down 0.1%, while in non-deliverable forward trading its one-month contract was quoted at 1,387.7.
** Year-to-date, the won has strengthened 5.9%.
** In money and debt markets, September futures on three-year treasury bonds lost 0.04 point to 107.31.
** The most liquid three-year Korean treasury bond yield rose 1.8 basis points to 2.442%, while the benchmark 10-year yield added 2.7 basis points to 2.854%. ($1 = 1,390.0700 won)
 (Reporting by Cynthia Kim; Editing by Sumana Nandy) 

Sumber : Reuters