Seoul: Stocks gain most in 2 1/2 months as Ukraine crisis eases
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[SEOUL] South Korean shares posted on Wednesday (Feb 16) their sharpest gain in 2 1/2 months, as signs of easing tensions between Russia and Ukraine lifted risk appetite. The Korean won strengthened, while the benchmark bond yield fell.
The benchmark Kospi closed up 53.14 points, or 1.99 per cent, at 2,729.68, the sharpest gain since Dec 1. The index snapped a 3-day losing streak.
Towing the gains, chip giants Samsung Electronics and SK Hynix rose 1.49 per cent and 2.76 per cent, respectively, while platform firm Naver added 1.88 per cent.
Stock markets around the world rallied after Russia indicated it had withdrawn some of its troops from exercises near the Ukraine border.
Apart from geopolitical issues, investors have turned their attention at minutes of the Federal Reserve's January meeting due later in the day, amid speculation the US central bank might raise rates by a full 50 basis points next month.
Lifting investor sentiment, data showed South Korea's unemployment rate edged down in January, with the number of people employed rising at the sharpest pace in nearly 22 years.
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Investors appeared to show scant response to reports that the Asian country saw a daily record of 90,443 new coronavirus cases, doubling within a week amid the spread of the Omicron variant.
On the main Kospi board, foreigners were net sellers of 43.9 billion won (S$49.3 million) worth of shares.
Goldman Sachs in its latest report said a potential MSCI upgrade to developed market status could prompt over US$44 billion potential incremental foreign investor portfolio flows and pull up Kospi by 35 per cent from the current level.
The won ended at 1,197.6 per dollar on the onshore settlement platform, 0.18 per cent higher than its previous close.
In offshore trading, the won was quoted at 1,197.1, while in non-deliverable forward trading its 1-month contract was quoted at 1,197.7.
In money and debt markets, March futures on 3-year treasury bonds rose 0.13 point to 107.65.
The most liquid 3-year Korean treasury bond yield fell by 1.7 basis points to 2.326 per cent. REUTERS
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