Seoul: Shares, won gain as US weighs tariff cut on China imports

SOUTH Korean shares rose to their highest close in nearly 3 weeks on Monday (May 23) while the won also gained, lifted by comment from US President Joe Biden that Washington may cut tariffs on imports from China. Bond yields rose slightly.

The benchmark Kospi rose 8.09 points, or 0.31 per cent, to end trade at 2,647.38, its highest close since May 4, after hovering around its previous close level for most of the day.

Biden said while visiting Japan that he was weighing cutting tariffs on Chinese goods.

“The market suffered from profit-taking in early part but rebounded later on Biden’s comment on the possible cut in import tariffs on China goods,” said Cape Investment and Securities analyst Na Jeong-hwan.

Among heavyweights, technology giant Samsung Electronics fell 0.15 per cent and peer SK Hynix rose 0.44 per cent, while battery maker LG Energy Solution rose 0.92 per cent.

Foreigners were net sellers of 28.9 billion won (S$31.5 million) worth of shares on the main board.

The won ended onshore trade at 1,264.1 per dollar, 0.32 per cent higher than its previous close at 1,268.1. It also reversed earlier losses on possible tariff cuts on Chinese imports by the US.

In offshore trading, the won was quoted at 1,263.5 per dollar, up 0.8 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,263.5.

The Kospi has fallen 11.09 per cent so far this year, and lost 2.1 per cent in the previous 30 trading sessions. The won has lost 6 per cent against the dollar so far this year.

SEE ALSO

Seoul: Stocks end higher, post biggest weekly gain in 2 months

The most liquid 3-year Korean treasury bond yield rose by 1.8 basis points to 3.031 per cent, while the benchmark 10-year yield rose by 3 basis points to 3.277 per cent. REUTERS