Seoul: Stocks end higher after US jobs report

SEOUL] South Korean shares ended higher on Monday, after a US jobs report signalled the economic recovery remained intact, with sentiment aided by expectations of a later-than-expected rate hike on a slight uptick in jobless rate. The won strengthened, while the benchmark bond yield fell.

The Kospi closed up 11.43 points or 0.35 per cent at 3,293.21.

The headline June US jobs data beat forecasts, signalling a strong end to the second quarter, while a slight uptick in the unemployment rate suggested rate rises could be further away than markets have come to fear.

Among the heavyweights, technology giant Samsung Electronics rose 0.50 per cent and peer SK Hynix added 0.41 per cent. Battery maker LG Chem also jumped 2.47 per cent.

Foreigners were net buyers of 700 million won (S$833,052) worth of shares on the main board.

"Kospi was lifted by the US jobs report that signalled a recovery in labour market remained on track but not strong enough to bring a change in Fed's monetary policy stance yet," said Lee Kyoung-min, an analyst at Daishin Securities.

"Samsung Electronics' earnings guidance and Federal Open Market Committee minutes will be eyed this week."

The won ended at 1,131.8 per dollar on the onshore settlement platform, 0.28 per cent higher than its previous close at 1,135.0.

In offshore trading, the won was quoted at 1,130.3 per dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,130.4.

In money and debt markets, September futures on three-year treasury bonds rose 0.12 point to 109.99.

The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 1.462 per cent, while the benchmark 10-year yield fell by 1.3 basis points to 2.088 per cent.

REUTERS