Seoul: Shares end higher on Fed view boost

[SEOUL] South Korean shares closed higher on Thursday, as sentiment was lifted by the US Federal Reserve reiterating its accommodative monetary policy stance. The won strengthened, while the benchmark bond yield also rose.

The benchmark Kospi closed up 18.51 points or 0.61 per cent at 3,066.01, having soared as much as 1.40 per cent.

Fed Chair Jerome Powell said the inflation forecast of 2.4 per cent for this year is a temporary surge and that the central bank anticipates no interest rate increase until at least 2024.

"(Kospi) took a relief from eased uncertainties over the Fed meeting, but it trimmed early gains as the benchmark 10-year US Treasury yields soared to around 1.68 per cent," said Daishin Securities' analyst Lee Kyoung-min.

Among heavyweights, chip giants Samsung Electronics and SK Hynix rose 0.73 per cent and 1.43 per cent, respectively, while internet giant Naver jumped 5.22 per cent.

Meanwhile, South Korean Covid-19 vaccine developer SK Bioscience skyrocketed 30 per cent to 169,000 won on their debut.

Foreigners were net buyers of 482.6 billion won (S$576.6 million) worth of shares on the main board.

The won ended at 1,123.7 per dollar on the onshore settlement platform, 0.58 per cent higher than its previous close at 1,130.2.

In offshore trading, the won was quoted at 1,123.4, while in non-deliverable forward trading its one-month contract was quoted at 1,123.3.

In money and debt markets, June futures on three-year treasury bonds rose 0.12 point to 110.77.

The most liquid three-year Korean treasury bond yield fell by 3.5 basis points to 1.142 per cent, while the benchmark 10-year yield rose by 2 basis points to 2.154 per cent.

REUTERS