Seoul: Stocks end higher at record close, Fed meeting in focus

[SEOUL] South Korean shares ended higher at a record close on Tuesday, though gains were capped as investors refrained from placing big bets ahead of the US Federal Reserve's monetary policy meeting. The won was flat, while the benchmark bond yield fell.

The Kospi closed up 6.50 points or 0.20 per cent at 3,258.63, extending the winning streak to a fourth straight session.

Repeated comments by US policymakers that inflation would be transitory calmed investors' worries, but markets also anticipate the Fed may be close to giving clues on when it might begin pulling back its unprecedented pandemic stimulus.

Among the heavyweights, technology giant Samsung Electronics rose 0.50 per cent and peer SK Hynix added 1.18 per cent, while battery maker LG Chem fell 0.85 per cent.

Foreigners were net sellers of 154.1 billion won (S$182.9 million) worth of shares on the main board.

"The market traded in a narrow range-bound ahead of the Federal Open Market Committee (FOMC) ... There are possibilities of a temporary rally after the FOMC," said Na Jeong-hwan, an analyst at Cape Investment & Securities.

The won ended at 1,117.0 per dollar on the onshore settlement platform, nearly unchanged from its previous close of 1,116.7.

In offshore trading, the won was quoted at 1,116.9, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,116.6.

In money and debt markets, June futures on three-year treasury bonds fell 0.08 point to 110.80.

The most liquid three-year Korean treasury bond yield rose by 1.7 basis points to 1.304 per cent, while the benchmark 10-year yield fell by 2.8 basis points to 2.068 per cent.

REUTERS