Seoul: Shares start week marginally higher after US jobs data

SOUTH Korean shares started the week marginally higher on Monday (Jul 11), as heavyweight chipmakers extended gains and recession worries eased after strong jobs data from the United States. 

The won strengthened, while the benchmark bond yield rose. The benchmark Kospi was up 4.83 points, or 0.2 per cent, to 2,355.44 as of 0118 GMT. 

US employers hired far more workers than expected in June and continued to raise wages at a steady clip, signs of persistent labour market strength that give the Federal Reserve ammunition for another 75-basis-point rate hike this month. 

The employment data supported the Fed’s view that economic growth would hold firm against aggressive tightening, though the market’s gains were capped on caution ahead of US inflation data and earnings, said Mirae Asset Securities’ Analyst Kim Seok-hwan.  Investors also eyed the Bank of Korea’s monetary policy meeting this week, with expectations of its first-ever 50 basis point rate hike. 

Technology giant Samsung Electronics rose 1 per cent and peer SK Hynix gained 0.4 per cent, extending gains for a third straight session. 

Covid-19 vaccine maker SK Bioscience jumped as much as 10.36 per cent to the highest since early-April amid signs of a new wave of infections. 

Foreigners were net buyers on the main board for a third session in row, marginally by 8 billion won (S$8.6 million). 

The won was quoted 0.2 per cent higher on the onshore settlement platform. 

In offshore trading, the won was quoted down 0.3 per cent, while in non-deliverable forward trading, its one-month contract was quoted at 1,298.8.

SEE ALSO

Seoul: Shares post biggest weekly gain in 5 months on chipmaker boost

In money and debt markets, September futures on three-year treasury bonds fell 0.11 point to 104.31.

The most liquid 3-year Korean treasury bond yield rose by 4.7 basis points to 3.4 per cent, while the benchmark 10-year yield rose by 3.2 basis points to 3.4 per cent. REUTERS