Seoul: Stocks end five-day losing streak; heavyweights lead gains

[SEOUL] South Korean shares ended higher on Tuesday, led by heavyweights and recouping early losses over stock short-selling resumption worries. Both the won and the benchmark bond yield rose.

The Kospi ended up 20.17 points or 0.64 per cent at 3,147.37, ending a five-day losing streak. It declined as much as 0.56 per cent in early trade to hit its lowest level since April 5.

Among heavyweights, chip giants Samsung Electronics and SK Hynix rose 1.10 per cent and 0.38 per cent, respectively, while battery maker LG Chem and Hyundai Motor added 1.43 per cent and 2.52 per cent.

Markets in Japan and mainland China remained closed for public holidays, keeping trading volumes thin across the region.

South Korea's financial markets will be closed on Wednesday due to a public holiday.

"It looks like a technical rebound after hitting recent low levels ... But the volatility due to the resumption of stock short-selling will likely continue for some time," said Choi Yoo-june, analyst at Shinhan Investment.

Meanwhile, South Korea's consumer inflation accelerated to a near four-year high in April, mainly due to a low base in 2020 and rising oil and agricultural prices.

Foreigners were net sellers of 73.8 billion won (S$87.7 million) worth of shares on the main board.

The won was quoted at 1,122.6 per dollar on the onshore settlement platform, 0.12 per cent higher than its previous close at 1,124.0.

In offshore trading, the won was quoted at 1,122.1, down 0.2 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,121.9.

In money and debt markets, June futures on three-year treasury bonds fell 0.01 point to 110.78.

The most liquid three-year Korean treasury bond yield rose by 0.4 basis point to 1.154 per cent.

REUTERS