Seoul: Shares hit 1-month high on upbeat GDP data

SOUTH Korean shares hit their highest in nearly 1 month on Tuesday (Jul 26), boosted by the country’s stronger-than-expected GDP data. The Korean won strengthened, while the benchmark bond yield inched down.

The benchmark Kospi ended up 9.27 points or 0.39 per cent at 2,412.96, its highest close since Jun 28.

South Korean economic growth unexpectedly picked up in the second quarter as strong consumption on eased Covid-19 restrictions offset poor exports.

Investors’ caution ahead of the US monetary policy meeting and major companies’ earnings this week capped gains.

It is difficult to put much meaning to the session’s gains with light trading volume and prevalent wait-and-see attitude, said Shinhan Financial Investment’s analyst Choi Yoo-june.

US President Joe Biden will meet virtually later in the day with the chairman of South Korean conglomerate SK Group to discuss the company’s investments. Chipmaker SK Hynix gained 0.50 per cent and battery maker SK Innovation rose 2.23 per cent.

Shin Sung-hwan, a professor at Hongik University in Seoul who had served in the Yoon Suk-yeol administration’s transition team, was nominated on Tuesday as the Bank of Korea’s new monetary policy board member.

Among heavyweights, technology giant Samsung Electronics rose 0.98 per cent, while battery maker LG Energy Solution added 0.77 per cent.

Foreigners were net buyers of 2.4 billion won (S$2.5 million) worth of shares on the main board.

SEE ALSO

Tokyo: Nikkei ends down ahead of Fed decision

The won was last quoted at 1,307.6 per dollar on the onshore settlement platform, 0.47 per cent higher than its previous close.

In offshore trading, the won was quoted down 0.2 per cent at 1,308.1 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,307.

In money and debt markets, September futures on 3-year treasury bonds were flat at 105.06 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 0.6 basis point to 3.147 per cent, while the benchmark 10-year yield fell by 1.5 basis points to 3.198 per cent. REUTERS