Seoul: Stocks edge higher; post second weekly drop on caution ahead of Powell speech

SOUTH Korean shares edged up on Friday (Aug 26) but posted a second weekly drop, as cautious investors awaited a key speech by Federal Reserve chair Jerome Powell that could give clues on the US interest rate hike path.

The won strengthened and the benchmark bond yield rose.

The benchmark Kospi rose 3.77 points or 0.15 per cent to end at 2,481.03, extending gains to a third session. The index, however, posted its second straight weekly loss, falling 0.5 per cent.

The market erased some of its earlier gains as a sense of caution prompted some profit-taking, said Mirae Asset Securities analyst Park Gwang-nam.

Among heavyweights, technology giant Samsung Electronics, SK Hynix and battery maker LG Energy Solution rose between 0.5 per cent and 1.42 per cent.

The trading volume on Kospi was 500.41 million shares. Of the total 930 traded issues, 437 advanced.

Foreigners were net buyers of shares worth 134.1 billion won (S$140.1 million) on the main board. For the week, they were net buyers for an eighth week, their longest streak since mid-January.

The won was quoted at 1,331.3 per dollar on the onshore settlement platform, 0.29 per cent higher than its previous close at 1,335.2. For the week, it lost 0.4 per cent to suffer a third consecutive week of loss.

In offshore trading, the won was quoted at 1,331.7 per dollar, up 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,331.1.

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Seoul: Shares, won rise on central bank's rate hike; bond yields soar

The Kospi has fallen 16.68 per cent so far this year, but gained 6.4 per cent in the previous 30 trading sessions.

The won has lost 10.7 per cent against the dollar this year.

The most liquid 3-year Korean treasury bond yield fell 0.8 basis point to 3.523 per cent, while the benchmark 10-year yield rose 1.4 basis points to 3.609 per cent. REUTERS