Seoul: Stocks end unchanged ahead of Powell hearing

[SEOUL] South Korean shares ended flat on Tuesday (Jan 11), as cautions investors awaited Federal Reserve Chair Powell's nomination hearing and US inflation data. The Korean won strengthened, while the benchmark bond yield fell.

The benchmark Kospi closed up 0.66 point or 0.02 per cent at 2,927.38, recovering from earlier losses of as much as 0.58 per cent.

Investors will look out for clues to the timing of expected policy tightening when Powell makes his appearance before the Senate Banking Committee later in the day.

US December consumer inflation data is expected on Wednesday (Jan 12), with headline CPI seen coming in at a red-hot 7 per cent on a year-on-year basis, boosting the case for interest rates to rise sooner rather than later.

Meanwhile, the Bank of Korea is scheduled to hold its monetary policy meeting on Friday (Jan 14).

Among the heavyweights, chip giants Samsung Electronics and SK Hynix rose 1.15 per cent and 2.81 per cent, respectively, while LG Chem added 3.38 per cent.

South Korean exports jumped 24.4 per cent year-on-year in Jan 1-10 period, data showed, supported by strong demand in semiconductors, petrochemical goods and cars.

Foreigners were net buyers of 487.9 billion won (S$553.3 million) worth of shares on the main board.

Days before pricing its US$10.7 billion IPO, battery maker LG Energy Solution forecast its market share to overtake main rival CATL and said it was aiming for a double-digit operating margin.

The won ended at 1,194.7 per dollar on the onshore settlement platform, 0.37 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,195, while in non-deliverable forward trading, 1-month contract was quoted at 1,194.8.

In money and debt markets, March futures on 3-year treasury bonds rose 0.06 point to 108.32.

The most liquid 3-year Korean treasury bond yield fell by 2.5 basis points to 2.036 per cent.

REUTERS