Seoul: Stocks end March 2% higher on hopes of easing inflation worries

[SEOUL] South Korean shares ended March up about 2 per cent on Thursday (Mar 31), on hopes of inflationary pressures easing, as US President Joe Biden weighed releasing up to 180 million barrels of oil, but weak China factory data and the Ukraine crisis capped gains.

The won weakened, while the benchmark bond yield rose.

The benchmark Kospi ended up 10.91 points, or 0.4 per cent, at 2,757.65, gaining for a third straight session.

The index posted a monthly gain of 2.17 per cent, while tumbling 7.39 per cent in the first quarter, its worst quarterly drop in 2 years.

Biden is expected to announce a plan, aimed at lowering gasoline prices that have hit record levels amid the Ukraine crisis.

Sentiment was hurt by weak Chinese factory and services sectors, as both swung into negative in March for the first time since Covid-19 outbreak in 2020.

Russia's latest attack in the outskirts of Kyiv and a besieged city in northern Ukraine also dampened hopes for peaceful negotiations.

South Korea's central bank data showed manufacturers' business confidence had soured most in 2 years on worries over rising raw material prices and logistics costs.

Foreigners were net sellers of 176.1 billion won (S$196.7 million) worth of shares on the main board.

The won ended at 1,212.1 per dollar on the onshore settlement platform, 0.21 per cent lower than Wednesday.

In offshore trading, the won was quoted at 1,212, while in non-deliverable forward trading its 1-month contract was quoted at 1,211.9.

In money and debt markets, June futures on 3-year treasury bonds fell 0.15 point to 106.22.

The most liquid 3-year Korean treasury bond yield rose by 4.4 basis points to 2.658 per cent, while the benchmark 10-year yield rose by 8.4 basis points to 2.969 per cent. REUTERS