Seoul: Shares end higher on upbeat US job data

[SEOUL] South Korean shares closed up on Monday, as strong US jobs data underpinned recovery momentum, but gains were capped as a firmer dollar held back foreign investors. The won ended flat, while the benchmark bond yield rose.

The Kospi ended up 8.03 points or 0.26 per cent at 3,120.83. It rose as much as 0.46 per cent and down 0.35 per cent in the early session.

The US labour department said on Friday that nonfarm payrolls surged by 916,000 jobs last month, the biggest gain since last August, while the dollar was poised to extend gains against major currencies on recovery optimism.

Among the heavyweights, technology giant Samsung Electronics rose 0.71 per cent and peer SK Hynix jumped 1.42 per cent, while battery maker LG Chem fell 1.33 per cent.

Shares of LG Electronics fell 2.52 per cent, after the company said it will wind down its loss-making mobile division after failing to find a buyer, a move that is set to make it the first major smartphone brand to completely withdraw from the market.

Foreigners were net buyers of 158.4 billion won (S$189 million) worth of shares on the main board.

The won ended at 1,127.7 per dollar on the onshore settlement platform, 0.02 per cent lower than its previous close at 1,127.5.

In offshore trading, the won was quoted at 1,127.5 per dollar, up 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,127.2.

In money and debt markets, June futures on three-year treasury bonds fell 0.15 point to 110.63 in late afternoon trade.

The most liquid three-year Korean treasury bond yield rose by 4.5 basis points to 1.196 per cent, while the benchmark 10-year yield rose by 3.7 basis points to 2.086 per cent.

REUTERS