Seoul: Stocks jump nearly 1% as chipmakers rally

CHIPMAKERS led an almost 1 per cent rise in South Korean shares on Tuesday (May 17) as markets globally took confidence from China’s plan to ease strict Covid-19 lockdowns. The Korean won jumped, while the benchmark bond yield was flat.

The benchmark Kospi ended up 23.86 points, or 0.92 per cent, at 2,620.44, marking the highest close since May 6.

Leading the gains, technology giant Samsung Electronics and peer SK Hynix surged 1.96 per cent and 1.81 per cent, respectively, while battery maker LG Energy Solution jumped 2 per cent.

Despite shockingly weak economic data for April, recession worries around the Chinese economy have dwindled due to planned easing of lockdown measures, said Daishin Securities analyst Lee Kyoung-min.

In Beijing, authorities have extended guidance to work from home in 4 districts, but have not enforced a citywide lockdown, while Shanghai aims to end strict measures starting next month.

Foreigners were net sellers of 159.8 billion won (S$174.2 million) worth of shares on the main board.

Of the total traded issues of 927, the number of advancing shares was 501.

The won was last quoted at 1,275 per dollar on the onshore settlement platform, 0.71 per cent higher than its previous close at 1,284.1.

The currency strengthened for a third straight session and marked the best daily performance since Apr 29.

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In offshore trading, the won was quoted at 1,275 per dollar, up 0.4 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,275.2.

In money and debt markets, June futures on 3-year treasury bonds rose 0.03 point to 105.33 in late afternoon trade.

The most liquid 3-year Korean treasury bond yield fell by 1.8 basis points to 3.033 per cent, while the benchmark 10-year yield fell by 0.3 basis point to 3.288 per cent. REUTERS