Seoul: Stocks post biggest jump in over five months on tech boost, strong foreign inflows

[SEOUL] South Korean stocks posted their biggest daily jump in more than five months on Tuesday, led by tech shares and strong buying by foreign investors. The won strengthened, while the benchmark bond yield fell.

The benchmark Kospi ended up 55.08 points or 1.75 per cent at 3,199.27, marking its sharpest intraday gain since March 11 and extending gains to a third straight session.

For the month, however, the benchmark index slid 0.10 per cent, following a 2.86 per cent fall for the whole of July.

Chip giants Samsung Electronics and SK Hynix surged 2.82 per cent and 2.90 per cent, respectively, while internet giant Naver and mobile messenger app operator Kakao added 2.57 per cent and 2.31 per cent each.

Foreigners were net buyers of 1,161.7 billion won (S$1.35 billion) worth of shares on the main board.

US payroll data is being closely watched by investors, given their focus on the timing of the Federal Reserve's tapering of its pandemic-era stimulus.

The South Korean government, meanwhile, unveiled a record 604.4 trillion won budget plan for the next year on Tuesday, taking the debt-to-gross domestic product (GDP) ratio to 50.2 per cent - the largest on record.

The country's trade data is due on Wednesday.

The won ended at 1,159.5 per dollar on the onshore settlement platform, 0.65 per cent higher than its previous close at 1,167.0.

It dropped 0.79 per cent on a monthly basis, extending the fall to a third straight month.

In offshore trading, the won was quoted at 1,159.1, while in non-deliverable forward trading its one-month contract was quoted at 1,159.3.

In money and debt markets, September futures on three-year treasury bonds rose 0.02 point to 110.54.

The most liquid three-year Korean treasury bond yield fell by 0.5 basis point to 1.393 per cent.

REUTERS