Seoul: Stocks end higher on Ukraine peace hopes, lower oil prices

[SEOUL] South Korean shares closed higher on Tuesday (Mar 29), lifted by hopes of some headway in peace talks between Russia and Ukraine, and a fall in oil prices. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi closed up 11.51 points, or 0.42 per cent, at 2,741.07.

Leading the gains, chip giants Samsung Electronics and SK Hynix rose 0.72 per cent and 1.69 per cent, respectively, while battery maker LG Energy Solution added 1.03 per cent.

"Risk appetite improved on hopes of Russia-Ukraine peace talks and as a drop in oil price eased inflation worries... but China lockdown issue and worries about economic conditions at home capped gains," said Lee Kyoung-min, an analyst at Daishin Securities.

Ukraine said it was hoping that the first face-to-face peace talks with Russia in over 2 weeks could lead to a ceasefire.

Oil prices dropped on Tuesday, extending losses from the previous session on the prospect of a sharp drop in fuel demand as Shanghai shut down to curb a surge in Covid-19 cases.

Meanwhile, South Korean sovereign bonds got off to a shaky start on Tuesday after crashing in the previous session, as investors bet the US Federal Reserve will tighten policy rapidly enough to risk a sustained slowdown in growth.

Foreigners were net sellers of 280.4 billion won (S$313.1 million) worth of shares on the main board.

The won ended at 1,219.8 per dollar on the onshore settlement platform, up 0.61 per cent.

In offshore trading, the won was quoted at 1,219.7, while in non-deliverable forward trading, its 1-month contract was quoted at 1,219.9.

In money and debt markets, June futures on 3-year treasury bonds rose 0.29 point to 106.08.

The benchmark 10-year yield fell by 4.2 basis points to 2.986 per cent. REUTERS