Seoul: Stocks inch up amid caution over US inflation data

[SEOUL] South Korean shares on Thursday (Feb 10) ended slightly higher after swinging between gains and losses, as investors stood cautious ahead of the release of US inflation data later in the day. The Korean won ended flat, while the benchmark bond yield fell.

The benchmark Kospi closed up 3.08 points, or 0.11 per cent, at 2,771.93, after dropping as much as 0.26 per cent earlier in the session. The index closed 0.82 per cent higher on Wednesday.

Among the heavyweights, chip giants Samsung Electronics and SK Hynix rose 0.94 per cent and 2.78 per cent, respectively, but offsetting the gains was a 7.14 per cent loss in battery maker LG Energy Solution.

The US inflation data is considered crucial for the US Federal Reserve's tapering timeline, with markets now pricing in a 1-in-3 chance that the central bank might hike rates by a full 50 basis points in March.

Keeping investors on toes, new coronavirus cases in South Korea hit a fresh high, with the daily tally at 54,122, as the Omicron variant drives a wave of infections.

Foreigners were net buyers of 835.5 billion won (S$938.4 million) worth of shares on the main board.

The won ended at 1,196.5 per dollar on the onshore settlement platform, unchanged from its previous close.

In offshore trading, the won was quoted at 1,196.1 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,196.7.

In money and debt markets, March futures on 3-year treasury bonds rose 0.08 point to 107.72.

The most liquid 3-year Korean treasury bond yield fell by 2.0 basis points to 2.259 per cent, while the benchmark 10-year yield fell by 0.7 basis point to 2.682 per cent. REUTERS