Seoul: Shares mark third weekly gain on strong foreign inflows

SOUTH Korean stocks closed higher on Friday (Nov 4) and logged their third weekly gain on strong foreign inflows as sentiment was buoyed by a rebound in Chinese tech shares, offsetting some losses after the US Federal Reserve's rate hike this week. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark KOSPI closed up 19.26 points, or 0.83 per cent, at 2,348.43, as of 0630 GMT. For the week, the index rose 3.53 per cent to post a third weekly gain.

Among heavyweights, technology giant Samsung Electronics rose 0.34 per cent and peer SK Hynix gained 2.18 per cent while battery maker LG Energy Solution advanced 0.51 per cent. Asian equities surged on Friday and were set for their first weekly gain in a month, as renewed hopes that China will relax its strict Covid measures spurred a rally in riskier assets. US Federal Reserve chair Jerome Powell said on Wednesday it was "very premature" to discuss when the central bank might pause its rate hikes.

The trading volume during the session in the KOSPI index was 430.47 million shares. Of the total traded issues of 932, the number of advancing shares was 482.

Foreigners were net buyers of shares worth 42.2 billion won on the main board.

The won was quoted at 1,419.2 per US dollar on the onshore settlement platform, 0.32 per cent higher than its previous close at 1,423.8.

In offshore trading, the won was quoted at 1,415.2 per US dollar, up 0.6 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,414.7.

The KOSPI lost 21.13 per cent so far this year, but dropped 1.6 per cent in the previous 30 trading sessions.

The won weakened 16.2 per cent against the US dollar so far this year.

In money and debt markets, December futures on three-year treasury bonds rose 0.22 points to 102.31.

The most liquid three-year Korean treasury bond yield fell by 7.1 basis points to 4.101 per cent, while the benchmark 10-year yield dropped 3.7 basis points to 4.166 per cent. REUTERS

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