South Korean shares fall 2% as investors weigh Trump's Fed chair choice

SEOUL, Feb 2 (Reuters) - Round-up of South Korean financial markets:

South Korean shares dropped more than 2% on Monday, retreating from a four-day winning streak, as investors assessed the potential domestic market impact of U.S. President Donald Trump's selection of the next Federal Reserve chair.

The won weakened more than 1%, while the benchmark bond yield rose.

The benchmark KOSPI .KS11 was down 112.87 points, or 2.16%, at 5,111.49 by 0155 GMT, marking its biggest intraday percentage fall since December 16, 2025. On Friday, the index closed at a record high for a fourth consecutive session.

Analysts assume Kevin Warsh, Trump's choice of the next central bank governor, is less likely to press for all-out rapid rate cuts than some other possible choices, though he has sounded more dovish than current chair Jerome Powell.

"Initial reaction in financial markets is negative, seeing Warsh as a hawkish figure," said Han Ji-young, an analyst at Kiwoom Securities.

Among index heavyweights, chipmaker Samsung Electronics 005930.KS fell 2.43%, while peer SK Hynix 000660.KS lost 3.85%. Shares of battery maker LG Energy Solution 373220.KS slid 2.14%.

Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 1.80% and 0.33%, respectively. Steelmaker POSCO Holdings 005490.KS shed 0.43%, while drugmaker Samsung BioLogics 207940.KS fell 0.97%.

Of the total 925 traded issues, 197 shares advanced, while 692 declined.

Foreigners were net sellers of shares worth 1.6 trillion won ($1.10 billion).

The won was quoted at 1,458.2 per dollar on the onshore settlement platform KRW=KFTC, 1.01% lower than its previous close at 1,443.5.

In money and debt markets, March futures on three-year treasury bonds KTBc1 lost 0.11 point to 104.83.

The most liquid three-year Korean treasury bond yield KR3YT=RR rose by 4.6 basis points to 3.183%, while the benchmark 10-year yield KR10YT=RR climbed 7.5 basis points to 3.652%.

($1 = 1,457.5000 won)