South Korean shares extend losses as high bond yields weigh

SEOUL, Sept 29 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares fell for a second straight session on Tuesday, weighed by concerns over high bond yields, while investors stood on the sidelines ahead of major events that could provide clues on AI chip demand.

** The benchmark KOSPI .KS11 closed down 18.93 points, or 0.27%, at 6,870.81, after falling as much as 1.6% earlier in the session.

** "While bond yields, the Middle East issue and AI remain as the keywords dominating the market, a wait-and-see stance persisted without clear answers to those," said Seo Jung-hun, an analyst at Samsung Securities.

** South Korea's exports likely rose for a 16th consecutive month in September, supported by AI-driven chip demand, though growth is expected to have slowed due to fewer working days, a Reuters poll showed.

** Investors are awaiting US chipmaker Micron Technology's MU.O earnings later this week and Samsung Electronics' early next month for further clues on AI chip demand.

** Chipmaker Samsung Electronics 005930.KS rose 0.93%, while peer SK Hynix 000660.KS erased early gains to close down 0.17%.

** Among other index heavyweights, battery maker LG Energy Solution 373220.KS slid 3.16%, while Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 1.27% and down 1.36%, respectively.

** Steelmaker POSCO Holdings 005490.KS shed 3.95%, while drugmaker Samsung BioLogics 207940.KS fell 1.07%.

** Of the total 914 traded issues, 232 shares advanced, while 624 declined.

** Foreigners were net sellers of shares worth 2.9 trillion won ($2.14 billion).

** The won was quoted at 1,356.7 per dollar on the onshore settlement platform , 0.24% higher than its previous close at 1,359.9.

** The most liquid three-year Korean treasury bond yield fell by 3.4 basis points to 4.076%, while the benchmark 10-year yield fell by 7.0 basis points to 4.474%.

($1 = 1,358.2000 won)