Seoul: Stocks jump on earnings cheer, won hits over 2-year low
SOUTH Korean shares rose more than 1 per cent on Thursday (Apr 28), as strong corporate earnings at home and abroad lifted investor confidence, while worries over a slowdown in China’s economy also eased. The Korean won hit a more than 2-year low, while the benchmark bond yield rose.
The benchmark Kospi closed up 28.43 points, or 1.08 per cent, at 2,667.49, after hitting a 6-week low in the previous session.
US stock index futures jumped during Asian trading hours after big tech companies reported strong first-quarter results.
Shares of Samsung Electronics fell 0.31 per cent after the technology giant cautioned that component shortages will likely continue in the second half.
But chipmaker SK Hynix rose 0.92 per cent, while LG Chem jumped 8.42 per cent as investors cheered the company’s first-quarter result in battery business.
Investors are trading with focus on earnings results, which came in robust for most domestic and overseas companies, while China’s stimulus measures eased some slowdown concerns, said Seo Sang-young, an analyst at Mirae Asset Securities.
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South Korea’s exports are expected to have posted their slowest growth in 14 months in April while consumer inflation is seen hitting a near 11-year high, a Reuters poll showed.
Foreigners were net sellers of 39.2 billion won (S$42.7 million) worth of shares on the main board.
The won closed 0.57 per cent lower at 1,272.5 per dollar on the onshore settlement platform, marking the lowest close since Mar 19, 2020, even after a warning from authorities of market intervention.
In offshore trading, the won was quoted at 1,272.5 per dollar, down 0.5 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,271.7.
In money and debt markets, June futures on 3-year treasury bonds fell 0.05 point to 105.49 in late afternoon trade.
The most liquid 3-year Korean treasury bond yield rose by 5.8 basis points to 2.926 per cent, while the benchmark 10-year yield rose by 1.2 basis points to 3.175 per cent. REUTERS
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