Seoul: Stocks hit 2-week high on Fed rate hike; won jumps most in 2 years

[SEOUL] South Korean shares ended at a near 2-week high on Thursday (Mar 17), as tech heavyweights tracked their US peers higher after the Federal Reserve hiked rates as expected, while signs of progress in Russia-Ukraine peace talks also aided sentiment.

The Korean won posted its sharpest gain in nearly 2 years, while the benchmark bond yield fell.

The benchmark Kospi closed up 35.28 points, or 1.33 per cent, at 2,694.51.

Tracking a 5 per cent surge in the Philadelphia Semiconductor Index, chip giants Samsung Electronics and SK Hynix rose 1.14 per cent and 6.44 per cent, respectively, while battery maker LG Energy Solution rose 3.44 per cent.

The Fed announced a quarter percentage point increase in the overnight federal funds rate and laid out an aggressive plan for further increases to combat inflation.

Fresh talks of compromise from Russia and Ukraine lifted hopes for a potential breakthrough, further boosting market sentiment just as China promised to roll out more economic stimulus.

Foreigners turned net buyers for the first time in 9 sessions, gobbling up net 462.6 billion won (S$518.6 million) worth of shares.

South Korea reported another daily record of Covid-19 cases of 621,328.

The finance minister said authorities would strengthen efforts to stabilise the foreign exchange market should currency movements be excessive, and extend loosened currency market measures.

The won ended at 1,214.3 per dollar on the onshore settlement platform, 1.76 per cent higher than its previous close, logging the sharpest gain since late-March 2020.

In offshore trading, the won was quoted at 1,213.7, while in non-deliverable forward trading its 1-month contract was quoted at 1,213.7.

In money and debt markets, June futures on 3-year treasury bonds rose 0.20 point to 107.63.

The benchmark 10-year yield fell by 6.7 basis points to 2.698 per cent. REUTERS