Seoul: Stocks end flat ahead of key US data

[SEOUL] South Korean shares ended flat on Tuesday (Nov 16), as optimism over US-China talks was partially offset by investor caution ahead of US retail sales data that could give signs of any impact inflation has had on consumer spending.

The won weakened, while the benchmark bond yield rose.

The benchmark Kospi closed flat at 2,997.21, erasing early gains of 0.41 per cent. The index ended 1.04 per cent higher at 2,999.52 on Monday (Nov 15).

Among the heavyweights, technology giant Samsung Electronics fell 0.14 per cent, while peer SK Hynix added 0.90 per cent. Platform companies Naver and Kakao slid 1.34 per cent and 1.16 per cent, respectively.

Investor focus was on US retail sales data due later in the day that will provide another hint about the health of the world's biggest economy. It is expected to have risen 1.1 per cent last month, according to a Reuters poll.

US President Joe Biden and his Chinese counterpart Xi Jinping held a 3-hour virtual talk, with the 2 leaders stressing their responsibility to the world to avoid conflict, while the official Xinhua news agency described the meeting as "frank, constructive, substantive and fruitful".

Foreigners were net buyers of 241.3 billion won (S$276.8 million) worth of shares on the main board.

The won ended at 1,179.9 per dollar on the onshore settlement platform, 0.13 per cent lower than its previous close.

In offshore trading, the won was quoted at 1,179.5 per dollar, up 0.3 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,180.8.

In money and debt markets, December futures on 3-year treasury bonds fell 0.13 point to 108.53.

The most liquid 3-year Korean treasury bond yield rose by 4.5 basis points to 1.957 per cent, while the benchmark 10-year yield climbed 3 basis points to 2.329 per cent.

REUTERS