Seoul: Shares end at record high on robust chip outlook

[SEOUL] South Korean shares ended at an all-time high on Tuesday as an upbeat outlook for the chip industry and hopes of economic recovery offset uncertainty over the US Senate runoffs in Georgia. Both the won and the benchmark bond yield fell.

The benchmark Kospi closed up 46.12 points or 1.57 per cent at 2,990.57, marking its seventh straight session of gains and the longest buying spree since mid-November.

The index jumped 2 per cent in the previous session as exports expanded at their fastest pace in 26 months in December, providing more signs of economic recovery.

Chip giants Samsung Electronics and SK Hynix soared 1.1 per cent and 3.6 per cent, respectively, while Celltrion and Samsung SDI jumped over 2 per cent each.

South Korea expects semiconductor exports to rise more than 10 per cent this year, marking a second year of robust demand as the Covid-19 pandemic spurs companies to add bandwidth for remote work and consumers to spend more on laptops and other devices.

The country reported 715 new coronavirus cases for Monday, much less than 1,020 a day earlier and from the peak in recent weeks, as the health ministry sees the worst of the third wave of coronavirus being contained.

The country's president said the government will take more measures to stabilise the housing market and to support those vulnerable to job insecurity.

Asian shares edged lower amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming US President Joe Biden's ability to pursue his preferred economic policies.

Foreigners were net sellers of 209.2 billion won (S$253.7 million) worth of shares on the main board.

The won ended at 1,087.6 per dollar on the onshore settlement platform, 0.51 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,086.8, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,086.4.

The most liquid three-year Korean treasury bond yield fell by 1.9 basis points to 0.934 per cent.

REUTERS