Seoul: Shares rise on US Fed pivot hopes, earnings in focus
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SOUTH Korean shares rose on Wednesday (Oct 26) to their highest in a week, led by heavyweight chipmakers and battery manufacturers, amid rising hopes of slower monetary tightening in the US. The Korean won strengthened, while the benchmark bond yield dropped.
The benchmark Kospi rose 14.47 points or 0.65 per cent to close at 2,249.56, the highest since Oct 18.
US consumer confidence ebbed in October after two straight monthly increases amid rising concerns about inflation and a possible recession next year, data showed overnight, supporting views of slower monetary tightening pace by the Federal Reserve.
“However, the mood was still cautious as the next month’s inflation data may reverse the hopes for a pivot in the US Fed’s policy again,” said Seo Jung-hun, an analyst at Samsung Securities.
Investor focus was also on major companies’ third-quarter results.
Chipmakers extended gains for a fourth consecutive session. Samsung Electronics rose 2.95 per cent, hitting the highest since Aug 31, a day before its earnings release. SK Hynix gained 0.43 per cent, as it flagged a possibility of slashing investment with a drop in its quarterly profit.
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LG Energy Solution jumped 3.52 per cent, as the battery maker raised revenue guidance by 14 per cent after quarterly profit beat forecasts on strong demand from carmakers and a weak local currency. Peer Samsung SDI added 3.36 per cent, which posted a 52 per cent increase in its profit.
LG Display lost 1.12 per cent as the flat-screen manufacturer posted its second consecutive quarterly loss and cut its investment budget.
Foreigners were net buyers of shares worth 612 billion won (S$606.9 million) on the main board, the biggest amount since Aug 31.
The won was last quoted at 1,426.6 per dollar on the onshore settlement platform, 0.46 per cent higher than its previous close.
In money and debt markets, December futures on three-year treasury bonds rose 0.03 point to 101.90.
The most liquid three-year Korean treasury bond yield fell 4.9 basis points to 4.189 per cent, while the benchmark 10-year yield dropped 13 basis points to 4.255 per cent. REUTERS
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