Seoul: Stocks little changed; 10-year treasury yield hits 8-year high
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SOUTH Korean shares traded nearly flat on Tuesday (May 3) with investors taking a breather ahead of the US Federal Reserves’ monetary policy meeting, while neighbouring Asian markets were closed for holidays.
The Korean won was little changed, while the benchmark bond yield hit an 8-year high. The benchmark Kospi was up 4.69 points, or 0.2 per cent, at 2,692.14 as of 1.28 am GMT.
Among the heavyweights, technology giant Samsung Electronics rose 1.2 per cent and peer SK Hynix gained 0.5 per cent, while battery maker LG Energy Solution added 0.6 per cent. Foreigners were net buyers of 32 billion won (S$35 million) worth of shares on the main board.
The stock market was supported by Wall Street’s rebound overnight and hopes for easing of supply-chain disruptions with China’s Covid-19 infections decreasing, said Cape Investment & Securities’ analyst Na Jeong-hwan.
South Korea’s consumer prices in April rose much faster than expected and at their quickest pace in 13-1/2 years compared with a year earlier, led by a surge in energy and some food prices, government data showed on Tuesday.
After the data release, a senior central bank official said the country’s consumer inflation would likely stay above 4 per cent for a while and stressed the need to manage inflation expectations.
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The won was quoted at 1,264.9 per dollar on the onshore settlement platform, 0.02 per cent higher than its previous close at 1,265.1.
In offshore trading, the won was quoted at 1,265.0 per dollar, up 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,264.6.
In money and debt markets, June futures on 3-year treasury bonds fell 0.08 points to 104.84. ** The most liquid 3-year Korean treasury bond yield rose by 4.8 basis points to 3.128 per cent, while the benchmark 10-year yield rose by 1.1 basis point to 3.383 per cent after hitting the highest since May 14, 2014 at 3.426 per cent. REUTERS
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