Seoul: Stocks close at record high; Fed outcome in focus

[SEOUL] South Korean shares posted a record closing high on Wednesday, with investors awaiting clues from the US Federal Reserve's policy statement due later in the day. The won ended flat, while the benchmark bond yield held steady.

The Kospi closed up 20.05 points or 0.62 per cent at 3,278.68, after having risen as much as 0.59 per cent. For the year so far, it is up 14.10 per cent.

The Fed faces a tension between its two main goals, as inflation rises faster than expected even with millions of Americans still unemployed more than a year after the onset of the pandemic.

Among heavyweights, technology giant Samsung Electronics rose 1.11 per cent and peer SK Hynix added 0.78 per cent, while battery maker LG Chem fell 1.46 per cent and internet giant Naver gained 1.03 per cent.

Foreigners were net buyers of 233.3 billion won (S$276.9 million) worth of shares on the main board.

The won ended at 1,117.2 per dollar on the onshore settlement platform, nearly unchanged from its previous close of 1,117.0.

In offshore trading, the won was quoted at 1,117.0 per dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,116.6.

In money and debt markets, September futures on three-year treasury bonds rose 0.05 point to 110.33.

The most liquid three-year Korean treasury bond yield fell by 2.3 basis points to 1.284 per cent, while the benchmark 10-year yield was flat at 2.071 per cent.

REUTERS