Seoul: Shares end flat as inflation woes offset upbeat China data

SOUTH Korean shares ended flat on Thursday (Jun 9) as optimism from stronger-than-expected exports data from China was countered by concerns around a key US inflation reading. The Korean won weakened, while the benchmark bond yield ticked up.

The benchmark Kospi ended slightly lower by 0.71 point, or 0.03 per cent, at 2,625.44, after falling as much as 0.74 per cent to hit the lowest intraday level in 2 weeks.

China’s exports grew at a double-digit pace in May, shattering expectations in an encouraging sign for the world’s second-biggest economy.

But, sentiment remained subdued after parts of Shanghai began imposing new lockdown restrictions.

There was also a cautious mood ahead of US inflation data due later in the week, where the risks are tilted to the upside, said Samsung Securities’ analyst Seo Jung-hun.

Among heavyweights, technology giant Samsung Electronics edged down 0.15 per cent and peer SK Hynix fell 0.47 per cent, while battery maker LG Energy Solution lost 0.71 per cent.

Foreigners were net sellers of 946.4 billion won (S$1.04 billion) worth of shares on the main board, marking the biggest daily sell-off since Mar 7.

The won was last quoted at 1,256.9 per dollar on the onshore settlement platform, down 0.25 per cent.

In offshore trading, the won was unchanged at 1,257.1 per dollar, while in non-deliverable forward trading, its 1-month contract was quoted at 1,256.6.

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Seoul: Shares end flat as investors await China, US economic data

In money and debt markets, June futures on 3-year treasury bonds rose 0.09 point to 105.01 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 4 basis points to 3.174 per cent, while the benchmark 10-year yield rose by 0.8 basis point to 3.482 per cent. REUTERS