Seoul: Shares end marginally higher on China policy hopes

SOUTH Korean shares ended higher on Tuesday (Nov 15), tracking firm Chinese equities as subdued data raised policy support hopes, although gains were limited due to continued profit-booking pressure. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi ended up 5.68 points or 0.23 per cent at 2,480.33, after fluctuating in a range of -0.4 per cent and +0.4 per cent, without a strong momentum in either direction.

China’s factory output and retail sales data for October came in worse than expected, suggesting the world’s second-largest economy is losing momentum as it struggles with protracted Covid-19 curbs and a property downturn.

After the data release, China’s major stock indices rose more than 1 per cent, while Hong Kong’s Hang Seng Index jumped over 3 per cent.

“China’s weak economic data fanned hopes for more policy easing, but there was also pressure to book profits in the local market after recent sharp gains,” said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Among heavyweights, technology giant Samsung Electronics rose 0.81 per cent and peer SK Hynix gained 0.77 per cent, but battery makers LG Energy Solution and Samsung SDI lost 1.32 per cent and 5.4 per cent, respectively.

Automakers Hyundai Motor and Kia lost 0.85 per cent and 2 per cent each, but online platform giant Kakao gained 0.34 per cent, while peer Naver advanced 1.86 per cent.

Foreigners were net sellers of shares worth 265.1 billion won (S$277 million).

The won was last quoted at 1,317.6 per dollar on the onshore settlement platform, 0.63 per cent higher than its previous close.

SEE ALSO

Seoul: Won marks fastest daily gain vs dollar since 2009

In money and debt markets, December futures on three-year treasury bonds rose 0.33 point to 103.45.

The most liquid three-year Korean treasury bond yield fell by 9.2 basis points to 3.757 per cent, while the benchmark 10-year yield fell by 5.5 basis points to 3.872 per cent. REUTERS