Seoul: Stocks end higher on foreign buying; US inflation in focus

[SEOUL] South Korean shares ended higher on Thursday, led by strong foreign buying, while investors waited for clearer signals on inflation ahead of US data due later in the day.

The won traded flat, while the benchmark bond yield fell.

The benchmark Kospi ended 8.46 points or 0.26 per cent higher at 3,224.64, bouncing back from a near 1 per cent fall on Wednesday.

Leading gains, internet giant Naver and mobile messenger operator Kakao jumped 4.18 per cent and 3.49 per cent, respectively. Among other heavyweights, technology giant Samsung Electronics slid 0.12 per cent, while peer SK Hynix rose 0.41 per cent.

Foreigners turned net buyers of 699.9 billion won (S$831 million) worth of shares on the main board, snapping a three-day selling spree.

The US Labor Department's consumer price index report due later on Thursday will give more cues on inflation and the Federal Reserve's steer on monetary policy.

"Inflation worries seem to have eased ... Focus is on the US inflation data release later in the day ahead of the Federal Open Market Committee (FOMC)," said Na Jeong-hwan, an analyst at Cape Investment & Securities.

The won ended at 1,115.8 per dollar on the onshore settlement platform, 0.04 per cent lower than its previous close at 1,115.4.

In offshore trading, the won was quoted at 1,115.4 per dollar, unchanged from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,115.0.

In money and debt markets, June futures on three-year treasury bonds fell 0.11 point to 110.89.

The most liquid three-year Korean treasury bond yield rose by 15.4 basis points to 1.291 per cent, while the benchmark 10-year yield fell by 1.5 basis points to 2.089 per cent.

REUTERS