Seoul: Stocks end higher on foreign buying, US recovery hopes

[SEOUL] South Korean shares closed higher on Tuesday as foreigners raised positions in domestic stocks, with sentiment aided by optimism around economic recovery in the United States.

The won strengthened, while the benchmark bond yield fell.

The Kospi closed up 6.25 points or 0.20 per cent at 3,120.83, recovering from early declines of as much as 0.34 per cent.

The S&P 500 and Dow indices closed at record highs on Monday after a survey showed activity in the US services industry reached its highest level on record in March.

Foreigners were net buyers of 543.4 billion won (S$650.5 million) worth of shares on the main board.

Among heavyweights, chip giant Samsung Electronics and internet giant Naver rose 0.70 per cent and 3.05 per cent, respectively, while battery maker LG Chem slid 0.61 per cent.

LG Electronics gained 3.56 per cent a day after the company said it will wind down its loss-making mobile division, as investors expect the announcement will raise corporate value.

Giant steelmaker POSCO dropped 1.79 per cent, following a report that the company has begun reviewing how it might end a joint venture with a firm controlled by the military in Myanmar.

The won ended at 1,119.6 per dollar on the onshore settlement platform, up 0.72 per cent.

In offshore trading, the won was quoted at 1,119.4 per dollar, up 0.4 per cent, while in non-deliverable forward trading its one-month contract was quoted at 1,119.1.

In money and debt markets, June futures on three-year treasury bonds rose 0.11 point to 110.69 in the afternoon trade.

The most liquid three-year Korean treasury bond yield fell by 2.2 basis points to 1.180 per cent, while the benchmark 10-year yield fell by 2.6 basis points to 2.068 per cent.

REUTERS