Seoul: Shares end at 1-1/2-week high on China stimulus optimism

SOUTH Korean shares on Tuesday (Jun 28) closed at their highest since mid-June, as China’s pledge to roll out stimulus assuaged some worries over recession. The Korean won hit its highest in 2 weeks, while the benchmark bond yield fell.

The benchmark Kospi ended up 20.17 points or 0.84 per cent at 2,422.09, extending gains for a third session.

The Korean stock market tracked strength in Chinese markets on a still-strong policy stance to boost economic growth, said Seo Sang-young, analyst at Mirae Asset Securities.

China’s state planner officer said on Tuesday the country will roll out tools in its policy reserve in a timely way to cope with economic challenges, while its central bank affirmed accommodative monetary policy to continue.

Meanwhile, South Korea’s export growth is expected to slow sharply to a 20-month low in June, contributing to a record trade deficit, though the data will be dragged down by temporary factors, a Reuters survey showed on Tuesday.

Among the heavyweights, technology giant Samsung Electronics jumped 1.02 per cent and peer SK Hynix rose 0.32 per cent, but battery maker LG Energy Solution fell 0.36 per cent.

Foreigners were net sellers of 37.4 billion won (S$40.4 million) worth of shares on the main board, having turned net buyers a day before for the first time in 7 sessions.

The won was last quoted at 1,283.4 per dollar on the onshore settlement platform, 0.24 per cent higher than the previous session and the highest since Jun 10.

In offshore trading, the won was quoted up 0.2 per cent at 1,283.6 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,282.1.

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Seoul: Shares jump as recession worries ease, foreigners return

In money and debt markets, September futures on 3-year treasury bonds was flat at 103.34 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1 basis point to 3.56 per cent, while the benchmark 10-year yield slipped 2.8 basis points to 3.696 per cent. REUTERS