Seoul: Stocks extend rally; US jobs data in focus

[SEOUL] South Korean shares ended slightly higher on Wednesday, extending their rally to a fourth day, but a selloff from institutional investors trimmed early gains driven by upbeat US manufacturing data. The won weakened, while the benchmark bond yield rose.

The Kospi closed up 2.36 points or 0.07 per cent at 3,224.23. It had risen as much as 0.6 per cent earlier in the session.

Among heavyweights, chip giant Samsung Electronics rose 0.25 per cent, while battery maker LG Chem and internet giant Naver fell 2.18 per cent and 1.09 per cent, respectively.

South Korea's consumer inflation accelerated to a more than nine-year high in May, reinforcing calls for gradual monetary tightening, though the increase was mainly due to a low base effect and rises in oil and agricultural prices.

Investor focus shifted to US payrolls data due on Friday, after manufacturing activity picked up in May as pent-up demand in a reopening economy boosted orders.

"Investors were seen taking a wait-and-see stance ahead of the US jobs data release as it may raise uncertainties over monetary policy if data reaffirms strong recovery," said Lee Kyoung-min, analyst at Daishin Securities.

Foreigners were net buyers of 32.4 billion won (S$38.5 million) worth of shares on the main board.

The won ended at 1,113.3 per dollar on the onshore settlement platform, 0.66 per cent lower than its previous close at 1,105.9.

In offshore trading, the won was quoted at 1,113.6 per dollar, down 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,113.2.

In money and debt markets, June futures on three-year treasury bonds rose 0.01 point to 110.78.

The benchmark 10-year yield rose by 1.4 basis points to 2.199 per cent.

REUTERS