Seoul: Stocks hit near three-month closing high

[SEOUL] South Korean shares extended gains on Wednesday to a near three-month closing high as buying by foreign investors offset worries over the country's rising Covid-19 infections. The won jumped most in over two months, while the benchmark bond yield fell.

The Kospi ended 13.30 points or 0.42 per cent higher at 3,182.38, its highest close since Jan 25, having gained in the past two sessions.

Among heavyweights, Samsung Electronics ended flat, while battery makers LG Chem and Samsung SDI rose 3.34 per cent and 1.01 per cent, respectively.

LG Electronics jumped to its one-week high on reports the company's joint venture with automotive supplier Magna International is close to signing contracts with Apple.

South Korea reported 731 new coronavirus cases as of Tuesday midnight, its highest daily tally since early January.

"As concerns over inflation and early tapering eased, investors' focus will shift towards corporate earnings, while foreign inflow, following weak dollar, will be eyed," said Samsung Securities' analyst Seo Jung-hoon.

Foreigners were net buyers of 104.6 billion won (S$125.3 million) worth of shares on the main board.

US consumer price index for March rose 0.6 per cent, logging the biggest increase since August 2012, but Treasury bond yields eased as data showed the pace of inflation was not rising wildly.

The won ended at 1,116.6 per dollar on the onshore settlement platform, 0.83 per cent higher than its previous close at 1,125.9, the sharpest daily gain since Feb 10.

In offshore trading, the won was quoted at 1,116.0 per dollar, up 0.5 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,116.0.

The most liquid three-year Korean treasury bond yield fell by 3.5 basis points to 1.104 per cent.

REUTERS