Shares end lower on concerns that Fed may continue aggressive monetary tightening

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Shares end lower on concerns that Fed may continue aggressive monetary tightening

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,419.50 points on Monday, down 24.98 points, or 1.02 percent, from the previous trading day. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,419.50 points on Monday, down 24.98 points, or 1.02 percent, from the previous trading day. [NEWS1]

 
Shares ended lower Monday amid concerns that the Federal Reserve may continue its aggressive monetary tightening and China could return to harsh restrictions after Covid-19-related deaths. The won fell against the dollar.
 
The benchmark Kospi fell 24.98 points, or 1.02 percent, to close at 2,419.50.
 
Trading volume was light at about 533.38 million shares worth some 6.94 trillion won ($5.1 billion), with losers outnumbering gainers 661 to 207.
 
This week, investors will focus on minutes of the Fed's latest policy meeting for clues on the course of rate hikes. News of China's Covid-19 situation was also weighing on their sentiment.
 
China reported its first pandemic-related death in nearly six months on Saturday and additional such deaths on Sunday.
 
"Investors sought shelter in safe haven assets such as government bonds and the dollar away from risky assets in emerging markets," Choi Yoon-ah, an analyst at Shinhan Securities, said.
 
Foreigners sold a net 162.1 billion won worth of stocks, while institutions purchased a net 79.7 billion won worth of stocks and retail investors a net 65.0 billion won.
 
In Seoul, most large-cap stocks declined.
 
Samsung Electronics fell 0.7 percent to 61,400 won, chipmaker SK hynix declined 2.4 percent to 86,300 won, Hyundai Motor shed 0.9 percent to 168,000 won, and car battery maker LG Energy Solution dropped 4.2 percent to 573,000 won.
 
Naver lost 1.62 percent to 182,500 won and Kakao 2.43 percent to 56,300 won.
 
Among gainers, the country's sole aircraft manufacturer Korea Aerospace Industries rose 0.2 percent to 45,950 won, refiner S-Oil climbed 0.3 percent to 88,500 won, and beverage firm Hitejinro was up 0.6 percent to 26,800 won.
 
The local currency ended at 1,354.70 won against the dollar, up 14.40 won from the previous session's close.
 
The Kosdaq fell 13.35 points, or 1.82 percent, to close at 718.57 points.
 
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds added 2.7 basis points to 3.833 percent, and the yield on 10-year government bonds dropped 4.8 basis points to 3.763 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]
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