Seoul: Shares edge up as investors wait for US inflation data

SOUTH Korean shares rose on Monday (Aug 8) after wavering throughout the session, as investors were on wait-and-see mode to confirm next US inflation data due on Wednesday to gauge whether the Federal Reserve will sustain aggressive interest-rate hikes. The Korean won weakened, while the benchmark bond yield rose.

The benchmark Kospi rose 2.30 points or 0.09 per cent to 2,493.10 as of 6.32 am GMT.

Early losses due to strong US jobs report on Friday were pared back later in the afternoon, as many were opt to see the next US inflation report before making bets about the Fed’s next moves in September, said Park Gwang-nam, an analyst at Mirae Asset Securities.

US job growth unexpectedly accelerated in July, lifting the level of employment above its pre-pandemic level and pouring cold water on fears the economy was in recession.

Among the heavyweights, technology giant Samsung Electronics fell 1.14 per cent and peer SK Hynix fell 2.23 per cent, while battery maker LG Energy Solution rose 0.22 per cent.

Foreigners were net buyers of 175.5 billion won (S$185.5 million) worth of shares on the main board.

The won was quoted at 1,306.4 per dollar on the onshore settlement platform, 0.62 per cent lower than its previous close at 1,298.3.

In offshore trading, the won was quoted at 1,306.2 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,304.9.

The Kospi has fallen 16.27 per cent so far this year, but gained 5.2 per cent in the previous 30 trading sessions.

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The trading volume during the session in the Kospi index was 409.15 million shares. Of the total traded issues of 928, the number of advancing shares was 422.

The won has lost 9 per cent against the dollar so far this year.

In money and debt markets, September futures on 3-year treasury bonds fell 0.18 point to 105.23.

The most liquid 3-year Korean treasury bond yield rose by 6.4 basis points to 3.144 per cent, while the benchmark 10-year yield rose by 6.1 basis points to 3.186 per cent. REUTERS