Seoul: Stocks end higher on earnings optimism

[SEOUL] South Korean shares closed higher on Friday, building on the previous session's sharp gains, as earnings optimism and positive cues from Wall Street underpinned markets. The won weakened, while the benchmark bond yield fell.

The Kospi closed up 4.21 points or 0.13 per cent at 3,254.42. The index rose 1.07 per cent on Thursday, marking its best day in two months on upbeat earnings from Hyundai Motor and Posco.

For the week, it fell 0.69 per cent, reversing a 1.83 per cent gain marked in the previous week.

Among heavyweights, internet giant Naver and messenger app operator Kakao jumped 2.73 per cent and 1.36 per cent, respectively. Chip giants Samsung Electronics and SK Hynix, however, slid 0.50 per cent and 0.84 per cent each.

Foreigners were net sellers of 163.6 billion won (S$192.9 million) worth of shares on the main board.

"Covid-19 situation, the US Federal Open Market Committee and earnings results from major chip giants are in focus for next week," said Daishin Securities' analyst Lee Kyoung-min.

SK Hynix and Samsung Electronics are set to announce their earnings on Tuesday and Thursday, respectively.

Mega-cap tech companies in the United States such as Microsoft, Amazon, Apple and Facebook will also announce their results next week.

The won ended at 1,150.8 per dollar on the onshore settlement platform, down 0.08 per cent.

Meanwhile, South Korea reported 1,630 new coronavirus cases for Thursday, down from a record 1,842 infections marked a day earlier.

In offshore trading, the won was quoted at 1,150.8, while in non-deliverable forward trading, its one-month contract was quoted at 1,151.0.

In money and debt markets, September futures on three-year treasury bonds rose 0.01 point to 110.27.

The benchmark 10-year yield fell by 3.4 basis points to 1.888 per cent.

REUTERS