Seoul: Shares end higher as China stocks rebound

[SEOUL] South Korean shares ended higher on Thursday, as Beijing stepped up efforts to calm the recent rout in Chinese shares, while investor reaction to the outcome of the US Federal Reserve's two-day policy meeting was muted. Both the won and the benchmark bond yield rose.

The Kospi ended up 5.79 points or 0.18 per cent at 3,242.65, extending gains to a third straight session.

China's markets edged higher after its government stepped up attempts to calm frayed investor nerves after a wild markets rout this week, asking foreign brokerages not to "overinterpret" its latest regulatory actions.

The Federal Reserve gave no clue as to when it might start reducing its purchases of government bonds, even as it said the economy had been strengthening despite a rise in coronavirus infections, and that accelerating inflation remained transitory.

Among heavyweights, technology giant Samsung Electronics fell 0.25 per cent, despite reporting a 54 per cent jump in operating profit for the second quarter. Peer SK Hynix ended flat.

Foreigners were net sellers of 226.7 billion won (S$267.9 million) worth of shares on the main board.

South Korea's exports, a closely watched data, were seen growing at a slower pace in July on a fading base effect from last year's trade slump, though robust overseas demand for key items will help extend the double-digit growth, a Reuters poll showed.

The won ended at 1,146.5 per dollar on the onshore settlement platform, 0.71 per cent higher than its previous close at 1,154.6.

In offshore trading, the won was quoted at 1,146.2, while in non-deliverable forward trading its one-month contract was quoted at 1,146.6.

In money and debt markets, September futures on three-year treasury bonds fell 0.05 point to 110.20.

The benchmark 10-year yield rose by 2.4 basis points to 1.887 per cent.

REUTERS