Seoul: Stocks end at record high as US jobs data shock eases rate woes

[SEOUL] South Korean shares ended at a record high on Monday, as weak US jobs data supported expectations that interest rates would remain low for an extended period, boosting risk appetite.

Both the won and the benchmark bond yield rose.

The benchmark Kospi rose 52.10 points or 1.63 per cent to close at an all-time high of 3,249.30. The index gained for a fourth straight session.

The Dow and S&P 500 hit record closing highs on Friday, after US jobs growth unexpectedly slowed, easing concerns over prospects for rising rates.

"Investor sentiment improved as a shock in the US April jobs data lifted expectations over more stimulus and eased concerns about tapering and normalisation in monetary policy," said Daishin Securities' analyst Lee Kyoung-min.

Among the heavyweights, chip giants Samsung Electronics and SK Hynix rose 1.59 per cent and 0.39 per cent, respectively, while Hyundai Motor and Samsung BioLogics added 2.46 per cent and 1.49 per cent.

Foreigners were net buyers of 238.7 billion won (S$283.7 million) worth of shares on the main board.

The won was quoted at 1,113.8 per dollar on the onshore settlement platform, 0.67 per cent higher than its previous close at 1,121.3.

In offshore trading, the won was quoted at 1,114.4 per dollar, down 0.3 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,114.2.

In money and debt markets, June futures on three-year treasury bonds rose 0.03 point to 110.89.

The most liquid three-year Korean treasury bond yield rose by 0.2 basis point to 1.139 per cent, while the benchmark 10-year yield rose by 1.4 basis points to 2.137 per cent.

REUTERS