Seoul: Shares end week higher, US jobs data in focus

SOUTH Korean shares rose on Friday (Jun 3) following Wall Street’s rally overnight, but gains were capped as investors were cautious ahead of US jobs data. The Korean won jumped, while the benchmark bond yield fell.

The benchmark Kospi ended up 11.66 points, or 0.44 per cent, at 2,670.65. The index rose 1.22 per cent for the week.

Despite hopes of easing inflation pressures abroad, domestic data instead weighed on the stock market, said Daishin Securities’ analyst Lee Kyoung-min, adding that investors also took a wait-and-see approach ahead of the US employment data.

South Korea’s deputy central bank chief said annual consumer price growth would likely stay in the 5 per cent range in June and July and that containing inflation expectations was important, as the country’s inflation hit the highest in nearly 14 years.

Among the heavyweights, technology giant Samsung Electronics inched up 0.15 per cent, while peer SK Hynix was flat. Battery maker LG Energy Solution fell 0.68 per cent.

Foreigners were net sellers of 13 billion won (S$14.3 million) worth of shares on the main board.

The won was last quoted at 1,242.7 per dollar on the onshore settlement platform, 0.76 per cent higher than its previous close.

The currency strengthened 1.09 per cent against the dollar for the week, extending its gaining streak to a third in a row, the longest since late October 2021.

In offshore trading, the won was quoted at 1,242.4 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,242.

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Seoul: Shares drop 1% on inflation concerns; won declines most in 15 months

In money and debt markets, June futures on 3-year treasury bonds rose 0.05 point to 105.17 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1.2 basis points to 3.115 per cent, while the benchmark 10-year yield fell by 3.2 basis points to 3.39 per cent. REUTERS