Seoul: Shares join global rally to end higher; online marketplaces jump

SOUTH Korean shares rose more than 2 per cent on Friday (Oct 14), buoyed by internet platform operators, in line with upbeat global equities despite faster-than-expected US inflation data. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi ended up 49.68 points or 2.3 per cent at 2,212.55, after touching a two-week low in the previous session.

It was the third-best daily performance this year to date, but not enough to make up for sharp losses seen earlier in the week. The index fell 0.91 per cent for the week, its eighth weekly fall in nine.

US consumer prices increased more than expected in September, reinforcing expectations the Federal Reserve will deliver a fourth straight 75-basis-point interest rate hike next month.

“The stock market rose on dip-buying, but a meaningful rising trend is unlikely with bond yields remaining at high levels for a longer period,” said Mirae Asset Securities’ analyst Park Kwang-nam.

Among heavyweights, technology giant Samsung Electronics jumped 1.99 per cent, peer SK Hynix gained 0.63 per cent, and battery maker LG Energy Solution advanced 1.26 per cent.

Shares of internet platform operator Naver jumped 4.42 per cent and peer Kakao surged 8.67 per cent, with affiliates Kakaobank and Kakaopay up 5.74 per cent and 4.94 per cent, respectively.

Foreigners were net buyers of shares worth 261.5 billion won (S$259.7 million) on the main board, extending their buying streak to a 10th session – the longest since late November 2020.

The won was last quoted at 1,428.5 per dollar on the onshore settlement platform, 0.2 per cent higher than its previous close.

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Seoul: Shares rise on central bank's dovish stance; bond yields dive

The currency weakened 1.13 per cent against dollar for the week, marking a ninth weekly loss in 10.

In money and debt markets, December futures on three-year treasury bonds rose 0.05 point to 102.00.

The most liquid three-year Korean treasury bond yield rose by 1.6 basis points to 4.219 per cent, while the benchmark 10-year yield fell by 4.6 basis points to 4.2 per cent. REUTERS