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

SOUTH Korean shares erased early gains to end flat on Wednesday (Jun 8) as investors refrained from placing big bets ahead of major economic data from China and the US. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi ended flat at 2,626.15, reversing a 0.5 per cent rise in early trade.

South Korean equities erased gains following Chinese market’s weakness on caution ahead of exports data while investors also awaited US inflation data due later the week, said Shinhan Financial Investment’s analyst Choi Yoo-june.

China’s vice-commerce minister said on Wednesday, a day prior to its May exports data release, that foreign trade is facing uncertainty and huge pressure due to domestic and external factors, including logistics problems and soaring raw material prices.

Meanwhile, South Korea’s economy grew by a seasonally adjusted 0.6 per cent in the first quarter from 3 months earlier, slightly lower than 0.7 per cent growth estimated earlier, revised central bank data showed.

Among the heavyweights, technology giant Samsung Electronics fell 0.31 per cent, while peer SK Hynix rose 1.92 per cent. Battery maker LG Energy Solution fell 1.5 per cent, while its parent company LG Chem jumped 4.5 per cent.

Mobile financial service provider Kakaopay dropped 15.57 per cent as Alipay Singapore sold its stake worth 467.5 billion won (S$511.7 million).

Foreigners were net sellers of 103.3 billion won worth of shares on the main board.

The won was last quoted at 1,253.8 per dollar on the onshore settlement platform, 0.31 per cent higher than its previous close at 1,257.7.

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Seoul: Shares end lower; domestic bond yield hits over 8-year high

In offshore trading, the won was quoted flat at 1,254.3 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,253.7.

In money and debt markets, June futures on 3-year treasury bonds rose 0.11 point to 104.87 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1.7 basis points to 3.214 per cent, while the benchmark 10-year yield fell by 6.4 basis points to 3.474 per cent. REUTERS