Seoul: Stocks pare early gains on Ukraine tensions but end higher

[SEOUL] South Korean shares ended higher on Thursday (Feb 17), but gave up some of their earlier gains as reports of mortar fire in eastern Ukraine triggered a broad risk-off sentiment across the region.

The Korean won was nearly unchanged, while the benchmark bond yield fell.

The benchmark Kospi closed up 14.41 points, or 0.53 per cent, at 2,744.09, after having gained 1.5 per cent earlier in the session.

Among heavyweights, chip giants Samsung Electronics and SK Hynix rose 0.27 per cent and 1.92 per cent, respectively, while battery maker LG Energy Solution slid 0.22 per cent.

Russian-backed separatists in eastern Ukraine accused government forces on Thursday of opening fire on their territory 4 times in the last 24 hours. It was not immediately clear how serious the incidents were.

That came after worries about a super-hawkish Fed rate-tightening campaign, potentially including a 50 basis-point hike next month, took a step down overnight after minutes of the latest policy meeting signalled a more measured, data-dependent approach from central bank officials.

Foreigners were net buyers of 648.7 billion won (S$728.3 million) worth of shares on the main board.

The won ended at 1,197.1 per dollar on the onshore settlement platform, only 0.04 per cent higher than its previous close.

In offshore trading, the won was quoted at 1,196.9, while in non-deliverable forward trading its 1-month contract was quoted at 1,197.3.

In money and debt markets, March futures on 3-year treasury bonds rose 0.10 point to 107.76.

The most liquid 3-year Korean treasury bond yield fell by 3 basis points to 2.295 per cent. REUTERS