Seoul: Shares hit 3-week high on upbeat US earnings, easing Europe recession woes

SOUTH Korean shares ended at a 3-week high on Wednesday (Jul 20), as investors’ appetite for riskier assets improved tracking overnight Wall Street gains on solid earnings and a weaker dollar amid easing recession worries in Europe. The won ended flat, while the benchmark bond yield jumped.

The benchmark Kospi closed up 15.88 points or 0.67 per cent at 2,386.85, its highest since Jun 28.

While Wall Street’s overnight strength and Europe’s easing recession fears helped markets, gains were limited due to some profit taking, said Mirae Asset Securities’ analyst Park Kwang-nam.

Focus is now on the European Central Bank’s monetary policy meeting due later this week to see whether interest rates are raised by 25 basis points or 50 basis points to tame record-high inflation.

US Treasury Secretary Janet Yellen and South Korean Finance Minister Choo Kyung-ho agreed they could inject liquidity into currency markets if necessary after a bilateral meeting between the 2 leaders on Tuesday.

Among the heavyweights, technology giant Samsung Electronics fell 0.66 per cent but peer SK Hynix rose 2 per cent, while battery maker LG Energy Solution added 0.26 per cent.

Foreigners were net sellers of 41.1 billion won (S$43.6 million) worth of shares on the main board.

The won was last quoted at 1,312.9 per dollar on the onshore settlement platform, 0.04 per cent higher than Tuesday’s close.

In offshore trading, the won was quoted down 0.5 per cent at 1,311.5 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,311.6.

SEE ALSO

Seoul: Shares slip as chipmaker rally cools

In money and debt markets, September futures on 3-year treasury bonds dropped 0.38 point to 104.61 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield rose by 9.4 basis points to 3.298 per cent, while the benchmark 10-year yield jumped by 9.5 basis points to 3.363 per cent. REUTERS