Seoul: Stocks inch higher ahead of Fed meeting

[SEOUL] South Korean shares rose in a range-bound trade on Tuesday, as investors refrained from making big bets ahead of the US Federal Reserve's policy meeting. The won weakened, while the benchmark bond yield rose.

The benchmark KOSPI rose 4.24 points, or 0.1 per cent, to 3,256.37 by 0137 GMT, following a record close on Monday. The index is set to extend the winning streak to a fourth straight session.

Repeated comments by US policymakers that inflation would be transitory calmed investors' worries, but markets also anticipate the Fed may be close to giving clues on when it might begin pulling back its unprecedented pandemic stimulus.

Among the heavyweights, technology giant Samsung Electronics rose 0.50 per cent and peer SK Hynix added 1.18 per cent. Battery maker LG Chem and internet giant Naver fell 0.48 per cent and 0.65 per cent, respectively.

Foreigners were net sellers of 141.8 billion won (S$168.3 million) worth of shares on the main board.

"The market seems quiet ahead of the Federal Open Market Committee, but inflation worries are seen easing ... investors' hopes to see a reaffirmation on easy monetary policy remain," said Huh Jae-hwan, an analyst at Eugene Investment & Securities.

The won was quoted at 1,117.1 per dollar on the onshore settlement platform, down 0.04 per cent.

In offshore trading, the won was quoted at 1,117.5, while in non-deliverable forward trading, its one-month contract was quoted at 1,117.1.

In money and debt markets, June futures on three-year treasury bonds fell 0.10 point to 110.78.

The most liquid 3-year Korean treasury bond yield rose by 1.5 basis points to 1.302 per cent, while the benchmark 10-year yield rose by 0.2 basis point to 2.098 per cent.

REUTERS