Seoul: Shares end at 7-week high on easing Sino-US worries

SOUTH Korean shares ended at a more than 7-week high on Wednesday (Aug 3) on gains in internet-sector stocks and strong foreign inflows, helped by easing concerns about Sino-US tensions over a top US diplomat’s visit to Taiwan. The won weakened, while the benchmark bond yield rose.

The benchmark Kospi ended up 21.83 points or 0.89 per cent at 2,461.45, its highest closing level since Jun 14.

US House of Representatives Speaker Nancy Pelosi was on a trip to Taiwan, visiting its parliament and chip manufacturing companies that had invoked China’s military actions, unnerving investors.

The market could avoid the worst scenario with China’s responses limited at Taiwan and Pelosi’s remarks turning out to be not so much concerning, said Mirae Asset Securities analyst Seo Sang-young.

Among the heavyweights, technology giant Samsung Electronics fell 0.65 per cent, while peer SK Hynix and battery maker LG Energy Solution rose 1.04 per cent and 4.8 per cent, respectively.

Leading the gains, internet platform operators Naver and Kakao advanced 3.86 per cent and 5.85 per cent, respectively. Kakaopay and Kakaobank also advanced 5.42 per cent and 3.46 per cent, each.

Foreigners were net buyers for a fifth straight session, buying shares worth 474.4 billion won (S$499.4 million), in their longest purchasing rally since early January.

The won was last quoted at 1,310.3 per dollar on the onshore settlement platform, 0.43 per cent lower than its previous close.

In offshore trading, the won was quoted up 0.1 per cent at 1,310.8 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,309.8.

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Seoul: Shares fall on Sino-US tensions

In money and debt markets, September futures on 3-year treasury bonds fell 0.2 point to 105.36 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 4.5 basis points to 3.067 per cent, while the benchmark 10-year yield rose by 3.3 basis points to 3.132 per cent. REUTERS