Seoul: Stocks end at 2-week high on tech surge

[SEOUL] South Korean shares ended at a 2-week high on Thursday, as strong gains in tech heavyweights outweighed worries about rising inflation in the United States and China. The won strengthened, while the benchmark bond yield fell.

The Kospi closed up 44.23 points or 1.50 per cent at 2,988.64, the highest close since Oct 1. It gained 0.96 per cent on Wednesday.

Among heavyweights, chip giants Samsung Electronics and SK Hynix rose 0.87 per cent and 1.96 per cent, respectively. Platform company Naver and battery maker LG Chem added 3.40 per cent and 4.95 per cent, respectively.

The S&P 500 and Nasdaq ended higher on Wednesday, led by gains in big growth names like Amazon and Microsoft, after the Federal Reserve signalled it could start reducing its crisis-era support for the US economy, raising recovery hopes.

Concerns over inflation, however, persisted and sent the yield on benchmark 10-year Treasury notes lower.

Meanwhile, South Korea's finance minister said the government is ready to deploy measures to stabilise currency markets if needed, as recent declines in the won seem fast.

Foreigners were net sellers of 394.5 billion won (S$448.9 million) worth of shares on the main board.

The won ended at 1,186.8 per dollar on the onshore settlement platform, 0.59 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,186.2 per dollar, unchanged from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,186.7.

In money and debt markets, December futures on 3-year treasury bonds rose 0.05 points to 108.75.

The most liquid 3-year Korean treasury bond yield fell by 0.8 basis point to 1.816 per cent, while the benchmark 10-year yield fell by 5.1 basis points to 2.350 per cent.

REUTERS