Seoul: Stocks end higher on Ukraine peace talk hopes

[SEOUL] South Korean shares closed higher on Wednesday (Mar 30), as hopes of a possible end to the Russia-Ukraine conflict lifted sentiment, although gains were capped on US economy concerns after 10-year yields briefly dipped below 2-year rates.

The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi closed up 5.67 points, or 0.21 per cent, at 2,746.74.

Among heavyweights, chipmaker giant SK Hynix and web portal operator Naver rose 0.83 per cent and 1.5 per cent, respectively, while technology giant Samsung Electronics fell 0.43 per cent.

Russia promised to scale down military operations around Kyiv and another city but the US warned the threat was not over, as Ukraine proposed adopting a neutral status in a sign of progress at face-to-face negotiations.

The widely tracked US 2-year/10-year Treasury yield curve briefly inverted on Tuesday for the first time since September 2019, as bond investors bet that aggressive tightening by the Federal Reserve could hurt the US economy over the longer term. Longer-dated yields falling below shorter ones indicate a lack of faith in future growth.

Meanwhile, a Reuters poll showed South Korean exports are expected to have slowed in March, with consumer inflation likely holding at a decade-high as China's lockdowns and the Ukraine crisis weighed on supply chains and added to cost pressures.

Foreigners were net sellers of 11.1 billion won (S$12.4 million) worth of shares on the main board.

The won ended at 1,209.6 per dollar on the onshore settlement platform, up 0.84 per cent.

In offshore trading, the won was quoted at 1,209.1, while in non-deliverable forward trading, its 1-month contract was quoted at 1,209.

In money and debt markets, June futures on 3-year treasury bonds rose 0.24 point to 106.37.

The benchmark 10-year yield fell by 7.6 basis points to 2.896 per cent. REUTERS