Seoul: Shares post biggest jump in two weeks as inflation worries ease

[SEOUL] South Korean shares snapped a five-session losing streak posted on Thursday, posting their biggest single-day jump in two weeks, as subdued US consumer price data calmed inflation worries. The won strengthened, while the benchmark bond yield fell.

The Kospi closed up 55.58 points or 1.88 per cent to 3,013.70, posting its sharpest intraday percentage gain since Feb 25. It gained as much as 2.37 per cent in early trade.

"Investors took relief from the US consumer prices data that inflationary pressure will be weaker than expected, which pulled down the bond yields but boosting Asian shares," said Seo Jung-hun, an analyst at Samsung Securities.

US consumer prices increased solidly in February, with households paying more for petrol, but underlying inflation remained tepid.

Further boosting the sentiment was South Korea's preliminary exports data, which jumped 25.2 per cent from a year earlier during March 1-10 period.

Among the heavyweights, technology giant Samsung Electronics rose 1.36 per cent and peer SK Hynix jumped 3.01 per cent, while battery makers LG Chem and Samsung SDI added 5.39 per cent and 8.02 per cent, respectively.

Foreigners were net buyers of 1.70 trillion won (S$2.01 billion) worth of shares on the main board.

The won ended at 1,135.9 per dollar on the onshore settlement platform, 0.60 per cent higher than its previous close at 1,142.7.

In offshore trading, the won was quoted at 1,135.5 per dollar, while in non-deliverable forward trading its one-month contract was quoted at 1,135.6.

In money and debt markets, March futures on three-year treasury bonds rose 0.07 point to 111.16.

The most liquid three-year Korean treasury bond yield fell by 1.0 basis point to 1.173 per cent, while the benchmark 10-year yield fell by 1.4 basis points to 2.023 per cent.

REUTERS