Seoul: Shares see best day in a month on US inflation data

[SEOUL] South Korean shares closed higher on Wednesday (Apr 13), marking their biggest gain in a month, after the US inflation data came in line with investors' expectations. The Korean won jumped, while the benchmark bond yield fell.

The benchmark Kospi closed up 49.73 points, or 1.86 per cent, to 2,716.49, jumping the most since Mar 10.

US monthly consumer prices increased by the most in more than 16 years in March as the Ukraine crisis boosted the cost of gasoline to record highs.

The stock market rallied on a relief that the US inflation data, although still very high, came in near the expected level, said Samsung Securities' analyst Seo Jung-hun.

Investors now eye the Bank of Korea's rate decision, due on Thursday, when its committee will hold the first-ever meeting without a governor. The central bank is likely to stand pat, but will embrace a steeper rate hike path ahead, a Reuters poll showed.

Technology giant Samsung Electronics gained 2.54 per cent and peer SK Hynix rose 1.8 per cent, while battery maker LG Energy Solution also jumped 4.87 per cent.

Foreigners were net sellers of 64.8 billion won (S$72 million) worth of shares on the main board, extending sell-offs to a sixth straight session.

The won closed at 1,228 per dollar on the onshore settlement platform, up 0.67 per cent.

In offshore trading, the won was quoted at 1,227.2 per dollar, up 0.1 per cent, while in non-deliverable forward trading, its 1-month contract was quoted at 1,227.3.

In money and debt markets, June futures on 3-year treasury bonds rose 0.29 point to 105.17 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 11.3 basis points to 2.993 per cent, while the benchmark 10-year yield fell by 3.3 basis points to 3.281 per cent. REUTERS